Buy-side Quality of Earnings

Virtas Partners deployed machine learning, automation and artificial intelligence to enhance data analysis and value driven insights for due diligence.  

Client Need

We were asked to perform a Quality of Earnings diligence assignment for a middle market PE firm investing in a platform company.   The company’s financial data was spread across multiple systems, formats, and time periods, making it difficult to produce a reliable Quality of Earnings (QofE) analysis.  The client required a partner who could quickly ingest and harmonize large volumes of financial and operational data, validate EBITDA adjustments, develop LTM and period over period comparisons of results, and produce a buyer‑ready QofE report — all in a fully remote environment.  Virtas powered by RapidCanvas leveraged its QofE automation toolkit to get the job done.

Tailored Solutions

  • AI‑Enabled Data Ingestion & Harmonization
  • Automated Re-calendarization for Buyer‑Ready Analytics
  • Automated Variance Detection & Heat‑Mapping
  • Automated EBITDA Normalization & Reconciliations
  • Comprehensive QofE Analysis

Value to client

  • Clean, unified, AI‑processed data
  • Increased EBITDA through identification of additional adjustments not captured by management
  • Accelerated the sale process – fast, accurate, and repeatable analytics
  • Improved insights into product performance and customer behavior
  • Enabled rapid refresh of QofE analyses as new periods closed
  • Validation of financial statements and adjustments​

Capabilities

  • Quality of Earnings
  • Financial Statement Analysis
  • Ai and Machine Learning Solutions
  • Data Harmonization
  • Data Analytics​