Quality of earnings for small-business buyers
Proof of cash, add-backs traced to the ledger and tax returns, concentration, working capital and coverage under the 2026 SBA tests. Flat fee from $4,500, 7–10 business days. Not sure the deal deserves that yet? Start with a $750 Deal Screen.
Fixed fee agreed before you pay · personal reply within one business day
Every engagement is done by Sergei Mochtchenkov, CFA. Charterholder since 2016 · 5.0 from 135 reviews · 304 jobs on Upwork · check the record
| Seller's stated SDE includes the add-backs below | $720,000 | |
| Owner salary & payroll tax W-2 + payroll register | ✓Supported | 142,000 |
| Owner health insurance 2024 invoices pending | ◐Partly supported | 18,000 |
| Depreciation & amortization tax returns | ✓Supported | 64,000 |
| Interest | ✓Supported | 22,000 |
| "One-time" compressor rebuild recurs 2 of 3 years | ✗Not supported | 48,000 |
| Spouse and son on payroll both dispatch daily | ✗Not supported | 66,000 |
| Cash sales not deposited no proof of cash | ✗Not supported | 66,000 |
| SDE that traces | $540,000 |
Illustrative figures, invented to show the method. 10% equity, 10-year loan at 10.5%, $110K replacement manager, $45K maintenance capex. At the seller's $720K the deal shows 1.62×. See the full sample report
Pick the depth the deal deserves today. You can go deeper once it survives the first pass.
| Deal Screen | Bankability Diligence | Typical CPA-firm QoE | |
|---|---|---|---|
| Fee | $750 | $4,500–6,500 (quoted above $5M) | $20,000–50,000 |
| Turnaround | 48–72 hours | 7–10 business days | 3–6 weeks |
| Add-back review | Checked against the CIM, P&L, returns and any support provided | Traced to ledger and tax returns | Traced, with management interviews |
| Proof of cash | Spot checks if statements provided | Trailing twelve months plus two years | Usually included |
| 1.25× coverage test | Yes | Yes, with downside cases | Varies |
| Working-capital peg | No | Yes | Yes |
| Counts as the SBA lender's QoE ($3M+) | No | No; it previews it | Only if the lender orders it |
CPA-firm figures are typical 2026 market ranges reported by buyers and providers, not a quote from any firm.
Each step answers one question. Stop as soon as the answer is no. The fee is fixed and agreed in writing before work starts; there is no hourly billing.
Is it worth pursuing?
Will the lender see what I see?
Get me to closing
After closing
Selling instead?
Also available: monthly bookkeeping and month-end close (QuickBooks Online, Xero), accounting cleanup and catch-up, financial models, and lender packages for refinancing. These depend on the size of the business, so they are scoped and priced together with you. Deals above $5M or with unusual structures can be discussed too.
“It’s been a pleasure working with him. He spend time to take deep understanding of our business and translates that into well-structured financial models.”
Six places where small-business deals usually come apart, and where your lender will look first.
Reported revenue tied to actual bank deposits, month by month. Cash the seller says was earned but never deposited doesn't count, for you or the lender.
Each adjustment followed to the ledger, payroll records and tax returns. "One-time" costs that recur get put back.
Where the P&L and the filed returns disagree, and which version a lender will use.
Share of revenue from the top customers, and dependence on key suppliers or on the owner personally.
What the business needs on hand to run, and a peg you can write into the purchase agreement.
Debt service coverage on historical numbers, equity injection, seller note on standby, and the price that still clears 1.25×.
A complete sample Deal Screen for a fictional commercial HVAC company: recast earnings, every add-back checked against the documents, coverage, highest supportable price, and the questions to send the seller.
Read the sample report“Great work, very explanatory, amazing communication highly recommend”
CFA charterholder since 2016 · Founder, Bankable Deal
Every engagement is done by Sergei personally, start to finish. He has spent more than 19 years in finance, including CFO and VP of Finance seats at operating companies, and builds the models himself: lender packages, debt service coverage, buy-side diligence and valuation work. Models he built have supported more than $1 billion in debt and equity raises.
Each record below links to a public profile you can check yourself.
CFA Institute member directoryActive member · charter awarded 24 Oct 2016Open the directory entry UpworkTop Rated Plus · 100% Job Success · 5.0 from 135 reviews · 304 jobs · 20,000+ hoursOpen the Upwork profile LinkedInVerified profile · 16,000+ followers · career historyOpen the LinkedIn profileFigures as shown on each profile, October 2026.
“Sergei is absolutely phenomenal to work with. A true professional, he has significantly helped my company and provided invaluable support on multiple important business calls.”
“Sergei is honest, hardworking and knows what he's doing.”
“Sergei is excellent in everything he does and a true pleasure to work with.”
An independent read of the numbers for you, the buyer, on a flat fee, before you commit more money. Knowing the edges is part of trusting the numbers.
Those reports come late, are written for the lender, and are paid for by you either way. If the earnings don't hold up, you find out after paying for them and after weeks of exclusivity. A Deal Screen tells you within three days whether the numbers support the price, while you can still renegotiate or walk.
It covers what a lender tests: proof of cash, add-back tracing, tax returns against the books, concentration, working capital and coverage. A full QoE from a CPA firm usually costs $20,000–50,000 and takes three to six weeks. If your deal is $3M or more and SBA-financed, the lender's QoE is still required; this work shows you the likely issues before the lender's QoE does.
For a Deal Screen: the CIM or the seller's P&L, and tax returns if you have them. For Bankability Diligence: bank statements for the last two fiscal years and the trailing twelve months, the general ledger or QuickBooks or Xero access, and payroll records. A data request list goes out on day one.
Businesses with roughly $300K to $3M in seller's discretionary earnings or EBITDA, priced around $1M to $15M (fees above $5M are quoted), financed with an SBA 7(a) loan, a conventional loan or seller financing. Most industries, in the US and Canada.
Yes, in Deal Desk to Close. Where SBA rules require it, the fee is disclosed to your lender on SBA Form 159. Fees come only from you.
Your documents are seen only by Sergei. He will sign your NDA, or a joinder to the seller's NDA, before you send anything sensitive.
Fill in what you know. The CIM and P&L can follow by email.
Not ready? Choose Free 15-minute call in the form and ask your questions first.
“Sergei worked well with us and was committed and patient to complete his work to a high standard. He communicated well, and was able to do a number of reviews and adjustments…”