When considering a merger or acquisition, understanding the true financial health of a target company is key to making the right investment. Eton Venture Services specializes in buy-side Quality of Earnings (QoE) analysis, offering investors and businesses a clear and unbiased look at the financials that matter most. Our team gives you the insights you need to make confident, informed decisions before moving forward with any deal.
When it comes to M&A, surface-level financials often don’t tell the full story. A Quality of Earnings analysis is key to uncovering hidden risks, verifying the sustainability of earnings, and evaluating the financial stability of a target company.
At Eton Venture Services, we specialize in providing precise, impartial, and independent buy-side QoE analysis, ensuring your financial due diligence is thorough, transparent, and grounded in reliable insights.
Our team dives deep into your target company’s financials, examining everything from revenue recognition and operating costs to working capital and cash flow.
We identify any potential red flags or areas of concern that could impact the deal, giving you a complete understanding of the target company’s financial position.
With our expert analysis, we help you see the full picture so you can move forward with assurance and clarity.
Our buy-side Quality of Earnings analysis is grounded in transparency, ensuring that every insight and conclusion we provide is backed by clear, verifiable data. We approach each engagement with integrity, delivering unbiased findings that you can rely on.
Every business is unique, and our buy-side Quality of Earnings analysis is tailored to meet the specific needs of each client. By aligning our analysis with your goals, we provide the clarity needed to make well-informed decisions.
We have a proven track record of supporting clients through the complexities of QoE analysis, helping investors and firms gain confidence in their M&A decisions. Join the industry leaders who have already benefited from our expert insights and exceptional service.
Founded by securities lawyers from top law schools / law firms and staffed with finance professionals trained by the Big Four and other prominent financial services firms, Eton brings intellectual and quantitative rigor unmatched by others.
The team at Eton is fantastic! Those guys cut their teeth as securities lawyers at premier firms in Silicon Valley so no matter how complex a situation we have presented to them, they are quick on the uptake, and they quickly produce great work. Plus, I can talk to the founder of the firm by simply picking up the phone. Eton truly exceeds our expectations! 
Working with Eton has been a fantastic experience, and they have been a great partner of ours. The team provides us with well-priced services, delivers quickly and is very responsive to our requests and questions, whether those communications are from our board of directors, our outside counsel, or from our financial statement auditors. 
I cannot thank Eton enough for delivering our business enterprise valuation so quickly. We had initially hired a different firm, who didn’t make any progress in three months. Eton provided a thorough and accurate report in five business days. They were amazing to work with, and I will refer them to everyone I know. I am so thankful for Chris and the entire Eton team.
As a fast-growing startup, we needed a valuation partner that could keep up with our dynamic needs. Eton has exceeded our expectations in every way. Their unique combination of legal expertise and financial know-how has made navigating the valuation process a breeze. We couldn't be happier with their service and will continue to rely on them as our go-to valuation firm.
Eton has been supporting us at Joby for more than a decade as we've grown from being a small startup through to the company that we are today.
As a CFO, I know that accurate and reliable valuations are crucial to our company's success. Eton Venture Services has been an invaluable partner in this regard, providing robust and defensible valuation calculations, analyses, and reports. Their deep industry knowledge and ability to navigate complex situations have enabled us to make informed decisions with confidence. Their third-party objectivity and close collaboration with our team and advisors have resulted in fully-documented analyses that comply with relevant valuation standards, mitigating risk and achieving the best possible outcome. Eton sets the benchmark for valuation services, and I highly recommend them to any CFO in need of accurate and reliable valuations.
As a startup founder, I have found Eton Venture Services to be an essential partner in helping me navigate the complexities of valuation. Their team's expertise and deep industry knowledge have enabled them to provide me with clear and comprehensive analyses that are crucial in making informed decisions for my company's future. They work closely with my team and advisors to ensure that all relevant standards are met and that our valuations are defensible. Their emphasis on documentation has been invaluable in mitigating risk and achieving the best possible outcome. I highly recommend Eton Venture Services to any startup founder in need of accurate and reliable valuation services.
As an investor in early-stage technology companies, I know that proper valuation is critical for a company's success. Eton Venture Services has been an essential partner for the companies in which I invest, providing comprehensive and reliable valuations that comply with relevant standards. Their deep industry knowledge and ability to navigate complex situations have been instrumental in helping these companies make informed decisions with confidence. Their commitment to exceptional service and responsiveness to our specific needs have been invaluable in maintaining compliance, mitigating risk, and getting it done right. Eton sets the benchmark for valuation services, and I highly recommend them to any company / investor in need of expert and reliable valuation services. 
Eton Venture Services plays a critical role in our valuation projects, providing deep industry knowledge, expertise, and comprehensive analyses on an aggressive timeline while demonstrating an unwavering commitment to exceptional service and compliance. Their personalized approach and trustworthiness have made them an invaluable partner in maintaining compliance and allowing us to focus on our core business. We are also impressed by Eton's responsiveness to auditor requests, further demonstrating their dedication to client success. Eton's rigorous methodologies and industry knowledge have exceeded our expectations and instilled complete trust in their valuations, allowing us to focus on our core business with peace of mind. 
I have had the pleasure of working with Eton on multiple occasions, and their exceptional service never fails to impress me. The team's ability to provide accurate, thorough, and audit-defensible valuations under extreme time constraints has been vital for our company. Their dedication to understanding our unique business needs and providing tailored solutions sets them apart from other firms. Eton is our go-to choice for valuation services.
As a Controller, I understand the importance of accurate and reliable valuations for our company's success. Eton Venture Services has been an invaluable partner, providing us with robust, defensible, and reliable valuation calculations, analyses, and reports. Their deep industry knowledge and ability to navigate complex situations have been instrumental in helping us make informed decisions with confidence. Their third-party objectivity and close collaboration with our team have resulted in fully-documented analyses that comply with relevant valuation standards, mitigating risk and achieving the best possible outcome. I highly recommend Eton Venture Services to any company in need of accurate and reliable valuations.
As a founder / CEO dealing with complex tax compliance valuation matters, I turned to Eton Venture Services for guidance. They played a critical role in our valuation project, providing expertise, deep industry knowledge, and comprehensive analyses on an aggressive timeline. Eton's commitment to exceptional service, responsiveness, and compliance sets a new standard. Their trustworthiness and personalized approach made them an invaluable partner in making sure that we comply with tax law. I highly recommend Eton Venture Services to any founder seeking accurate, reliable, and trustworthy valuations.
Chris and the Eton team are great to work with. They are responsive, thorough, and have deep industry knowledge. Our valuation report was completed on time, and I received status updates throughout the process. As a second time founder, I have worked with several valuation firms in the past - Eton Venture Services has been the best without a doubt.
Eton Venture Services has been a trusted partner for our company's valuation needs. Their deep industry knowledge, expertise, and comprehensive analyses have been instrumental in helping us make informed decisions with confidence. Eton has consistently demonstrated their dedication to client success since day one of our partnership. Their rigorous methodologies and industry knowledge have exceeded our expectations and instilled trust in their valuations, allowing us to focus on our core business. I look forward to our partnership and working with them on future valuation needs.
As a Founder and CEO, it's important to have a reliable partner for our company's valuation needs. Eton Venture Services has been just that, letting us make informed decisions with confidence. Their excellent service and responsiveness have been crucial in maintaining compliance and mitigating risk, and their emphasis on documentation has helped achieve strong outcomes. I would recommend Eton Venture Services to any CEO in need of accurate and reliable valuations.
Eton Venture Services has been a game-changer for our company. Their team's ability to efficiently handle complex financial situations with ease and professionalism is unmatched. I've had the pleasure of working with Eton on multiple valuations, and I can confidently say that their dedication to providing top-quality service is unparalleled. We'll never look elsewhere for our valuation needs!
As the Interim CFO of Definitive Intelligence, a Web3-focused company, I required top-notch, independent valuation services and immediately turned to Eton for their unparalleled service and expertise. I have worked with Eton on several other companies, including Notion, Preset, and Convex, across various valuation needs at different companies and have consistently been amazed by their meticulous approach, swift delivery, and cost-effective solutions for all projects. Eton has always gone above and beyond, offering a unique combination of valuation expertise, legal insight, experience liaising with the C-suites and boards of directors, and seamless collaboration with us on any post-valuation questions. The unparalleled level of comprehensiveness, precision, and reliability in their valuation and advisory services sets them apart from the competition.
A typical engagement on a quality of earnings analysis lasts four to eight weeks. The exact timeline can vary depending on the complexity of the business, the scope of the analysis, and the availability of financial records.
A Quality of Earnings Report for small businesses with less than $10 million in revenue typically costs between $25,000 and $35,000. For larger businesses, prices often start at $60,000 and can reach six figures.
Costs depend on several factors, including:
While costs vary, investing in a thorough QoE report from a trusted firm is required to avoid costly mistakes during a transaction.
If significant red flags are uncovered—such as inflated earnings, hidden liabilities, or inconsistencies in reporting—buyers may renegotiate terms, adjust the purchase price, or, in extreme cases, walk away from the deal.
Sellers, on the other hand, can use the findings to address issues proactively, disclose them transparently, or prepare for renegotiations.
An audit provides assurance that a company’s financial statements comply with GAAP, focusing on reported financial results, accuracy, and compliance.
It typically examines annual results and emphasizes net income, with detailed testing of account balances and transactions. Audits are primarily used for regulatory or compliance purposes.
A QoE report, however, is specifically designed for M&A transactions.
It analyzes and normalizes historical results by removing non-recurring, unusual, or one-time items, and focuses on adjusted earnings such as EBITDA.
QoE reports typically cover a longer time period, including monthly results, and focus on business risks, adjusted working capital, and indebtedness—key factors for buyers in a transaction.
In essence, audits verify financial accuracy, while QoEs provide the insights necessary to assess the sustainability of earnings and evaluate risks in the context of M&A.
Buyers in M&A deals almost always rely on a QoE as part of due diligence and rarely depend solely on an audit.
