A quality of earnings (QoE) report for a small-business acquisition typically costs $5,000 to $50,000 or more. Smaller deals under about $2 million often land in the $5,000, $15,000 range; bigger or messier businesses cost more because there's more data to verify. A QoE is independent due diligence that confirms whether the seller's reported profit is real, usually a small fraction of the price it protects.
What drives the price
QoE fees are mostly a function of scope. The main cost drivers:
- Deal size and revenue, more transactions to sample means more hours.
- Complexity, multiple entities, locations, or revenue streams raise the fee.
- Books quality, cash-basis or messy records take longer than clean accrual statements.
- Scope, a full QoE costs more than a lighter "financial due diligence" review.
| Deal size | Typical QoE fee | Scope |
|---|---|---|
| Under $1M | $5,000, $10,000 | Focused review / lighter scope |
| $1M, $3M | $10,000, $25,000 | Standard buy-side QoE |
| $3M+ | $25,000, $50,000+ | Full QoE, multiple entities |
Is it worth it?
For most acquisitions above roughly $500,000, yes. A QoE report independently verifies earnings and add-backs, catches overstated profit and working-capital gaps, and often pays for itself by giving you the data to renegotiate. On very small deals, a lighter-scope review or a thorough accountant may be enough. Learn what's inside a report in our quality of earnings guide.
Who pays for it
The buyer almost always pays, because a QoE is buy-side diligence done for your protection and you want a report you control. Occasionally a seller runs a sell-side QoE before listing, but a savvy buyer still wants independent eyes on the numbers.
Frequently asked questions
Typically $5,000 to $50,000+. Smaller deals under $2M often run $5,000, $15,000; larger or more complex businesses cost more.
For most deals above ~$500,000, yes. It verifies earnings, catches overstated profit, and often pays for itself in renegotiation leverage.
The buyer almost always pays, since it's buy-side diligence for the buyer's protection. Sellers occasionally commission a sell-side QoE before listing.
