A big change I’d LOVE to see: Bankers/Lawyers should REQUIRE all clients to purchase a Quality of Earnings when acquiring a business. The incentives are otherwise too perverse to advise you in good faith. Who says no?
Outside of the SBA space, most capital providers do “require” a QofE. In the last few years, even most sell-side investment banks began to firmly push, but not totally require. I do find that most of the prominent SBA lenders seem to be pushing them on most deals, but maybe only requiring on the extra hairy ones. Times have been good and the environment has been competitive, we’ll see what a bit of tightening does!
@Chris_CayneQofE @chrisxmunn It’s funny - every sell-side bank that works with founder owned businesses that we’ve done work with all require a QoE as part of THEIR risk management in representing the seller.