September 2019
When conducting a quality of earnings analysis as part of a due diligence process, a company’s balance sheet may seem like a secondary consideration when compared to income, expenses and normalized EBITDA. Yet, to help ensure that the benefit stream and EBITDA generated by a target company are dependable, it is important to consider the significance of the balance sheet when measuring a company’s annual earnings. Indeed, due diligence procedures related to the balance sheet are vital components to the current and future financial health of a target company.
