A third party performed Quality of Earnings assessment (e.g., by a forensic CPA or other due diligence professional) provides an independent assessment without any emotional attachment to the add-backs.
This ensures that a professional objectively assesses, expertly categorizes, and confirms that the adjustment amounts are supported with appropriate documentation. In short, a third-party diligence mitigates the risk of inflated adjusted EBITDA and resulting overstated valuations.
