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How Much Does a Quality of Earnings Report Cost in 2026? By Deal Size

By The Ledgerism Editorial Team · The Ledgerism Brief Editorial Team produces original, methodology-disclosed accounting and tax research—data trackers, databases, and reference guides built to be the most-cited source in the field. Every figure is verified against primary sources including FASB, the IRS, the PCAOB, NASBA, the AICPA, and state boards of accountancy.

How much does a quality of earnings report cost in 2026? A QoE report typically runs $25,000 to $50,000 for deals under $5 million in EBITDA, $50,000 to $150,000 for deals in the $5 to $15 million EBITDA band, $150,000 to $300,000 for $15 to $50 million EBITDA deals, and $200,000 to $500,000 or more for deals above $50 million in EBITDA, with Big 4 firms typically charging a 30% to 50% premium over national mid-tier firms like RSM, Grant Thornton, BDO USA, CohnReznick, and EisnerAmper. Buy-side and sell-side QoE pricing are comparable on the same deal size, but a sell-side QoE issued before going to market often runs 10% to 20% leaner than a deep-dive buy-side QoE.

The headline answer: how much does a QoE report cost

A quality of earnings report costs $25,000 to $50,000 for deals under $5 million in EBITDA, $50,000 to $150,000 for deals in the $5 to $15 million EBITDA band, $150,000 to $300,000 for deals in the $15 to $50 million band, and $200,000 to $500,000 or more for deals above $50 million in EBITDA, from a national mid-tier or boutique transaction advisory firm in 2026. Big 4 firms charge 30% to 50% more on comparable scope. Sell-side QoE work runs 10% to 20% leaner than deep-dive buy-side work on the same deal size. Timelines run 4 to 8 weeks; rush engagements add 20% to 50% to the fee.

What drives the price of a QoE report

QoE fees are not standardized. The AICPA does not regulate transaction advisory pricing, and the work sits outside the GAAS audit fee schedule entirely. Seven factors move pricing materially.

Target EBITDA size. Fee scales with deal size because larger targets carry more transactions, more legal entities, more accounts to test, and higher stakes per adjustment dollar. A $3 million EBITDA target with a single legal entity and clean accounts receivable is the cheap end. A $40 million EBITDA target with four operating subsidiaries, two foreign entities, and complex inventory is the expensive end.

Complexity of revenue recognition. A pure-cash retailer with point-of-sale revenue is the easiest QoE work. A SaaS company with annual contracts, multi-element arrangements, and ASC 606 performance obligation issues is significantly harder. Healthcare practices with payer mix, contractual write-downs, and revenue cycle complexity carry premiums. Government contractors with cost-plus arrangements and ASC 912 accruals carry the largest premium.

Number of legal entities and locations. Each operating subsidiary or branch location adds a separate trial balance to test, separate working capital normalization, and separate management interviews. Multi-location service businesses (restoration, HVAC, restaurants, healthcare practices) often require location-level testing rather than rolled-up testing.

Length of trailing financial period. Standard scope is trailing twelve months (TTM) plus two prior full years. Buy-side PE diligence often expands to trailing thirty-six months (TTM3) or full five-year history for cyclical businesses. Each additional year of history adds testing time.

Data room quality. A target with a clean Datasite, monthly closes within 5 business days, complete trial balances, and an organized contract repository absorbs QoE work efficiently. A target that delivers QuickBooks files mid-engagement, lacks formal closes, and has unreconciled bank accounts absorbs significantly more advisor time. Auditors price the expected data hygiene into the engagement letter.

Depth of working capital and add-back analysis. A simple “report on the financials” QoE is the floor. A buy-side QoE that includes a normalized working capital target (peg) with monthly average analysis, a customer cohort analysis, a separate cash-to-accrual conversion, and a separate carve-out P&L for the divested division is at the top.

Firm tier and partner involvement. Big 4 transaction advisory pricing assumes partner-managed delivery and carries the brand premium that PE limited partners value on platform-level diligence. National mid-tier firms (RSM, Grant Thornton, BDO USA, CohnReznick, EisnerAmper) price 30% to 50% below Big 4 on comparable scope with comparable depth. Boutique transaction advisory shops (Stout, Alvarez & Marsal Transaction Services, Riveron, JBR Capital, BPM, BDO Capital Advisors) price competitive to mid-tier and often deeper on specific verticals.

QoE cost by deal size

Fees scale roughly linearly with deal complexity rather than with deal size alone. A $25 million EBITDA single-product SaaS company with clean ASC 606 implementation can cost less to diligence than a $10 million EBITDA multi-location HVAC roll-up with location-level working capital and 8 acquired subsidiaries on the trial balance. PE sponsors and strategic buyers should expect QoE quotes to vary 30% to 50% across firms on the same target, and the variance is often more about how the firm frames scope than about underlying capability.

QoE pricing by provider tier

The firms that issue quality of earnings reports cluster into four tiers. Pricing varies meaningfully across them, and so does the depth of the analysis, the brand weight with PE LPs, and the speed of turnaround.

Deloitte, PwC, EY, and KPMG carry the brand weight that PE LPs and pension fund LP advisory committees expect to see on large platform investments. Their pricing assumes partner-managed delivery and a deeper review of GAAP technical accounting issues (ASC 606, ASC 842, ASC 805 purchase accounting). The premium is real and is often worth paying for deals where institutional LP scrutiny is high or where the target has complex revenue recognition.

RSM, Grant Thornton, BDO USA, CohnReznick, EisnerAmper, Crowe, and Baker Tilly together dominate the mid-market QoE space. Each of these firms has a dedicated transaction services practice with named partners specializing in PE and corporate development work. Pricing typically runs 30% to 50% below Big 4 on comparable scope, with comparable analytical depth on most engagements. RSM has invested heavily in PE-specific delivery; Grant Thornton has a strong healthcare and tech vertical practice; CohnReznick is dominant in real estate and healthcare; EisnerAmper has a strong consumer practice.

Alvarez & Marsal Transaction Services, Stout, Riveron, BPM, Plante Moran, and Aprio are the specialist transaction advisory boutiques that compete on vertical depth and speed. Many of them are spinouts from Big 4 transaction advisory practices and bring partner-level expertise without the Big 4 overhead. Pricing typically runs in line with national mid-tier, with deeper specialization on specific verticals.

Cohen & Co, Withum, Wipfli, Mazars USA, Cherry Bekaert, and MGO serve the lower mid-market with QoE pricing that fits search funds, independent sponsors, and sub-$5M EBITDA deals. These firms often package QoE work alongside tax due diligence and IT due diligence as a unified diligence engagement.

What is included in a QoE fee, and what is extra

Included in the standard QoE scope. Trial balance test work for the trailing twelve months plus two prior full years. Normalized EBITDA calculation with quantified add-back schedule. Working capital trend analysis with a proposed working capital target (peg). Revenue quality analysis (customer concentration, retention, ASC 606 issues if applicable). Gross margin trend analysis. Operating expense trend analysis. Cash to accrual reconciliation. Buyer or seller conference calls (typically 4 to 8 included calls). Draft report, response cycle, final report.

Typically excluded. Tax due diligence (often a separate engagement at $25,000 to $100,000 from the same firm or a different one). IT due diligence. Operational due diligence. Carve-out P&L preparation for divested business units. ASC 606 implementation review. ASC 842 lease accounting review. Purchase price allocation (ASC 805) work. Net working capital adjustment work post-close. Earnout calculation work post-close. Legal entity reorganization analysis. Foreign entity diligence (CCAA, IFRS reconciliation).

Common scope creep items. A target reveals mid-engagement that it has an undisclosed minority subsidiary, triggering scope expansion. A customer concentration issue surfaces and the buyer wants cohort retention analysis that was not in scope. The target announces a price increase in the trailing period, requiring a separate analysis of pricing impact on the run-rate. Mid-engagement scope changes typically trigger a change order at 15% to 30% of the original fee.

Cost-saving tips that actually work

Run a competitive bid process. A buy-side PE sponsor should solicit 3 to 4 quotes from comparable firms (one Big 4, two national mid-tier, one boutique). Quotes vary 30% to 50% on comparable scope. The cheapest firm is rarely the best fit, but the comparison establishes a market price and reveals which firms are aggressive on the vertical.

Scope tight, then expand if needed. Start with TTM plus two prior years rather than TTM3 plus five prior years. Add the deeper history only if the cyclicality of the business or specific deal terms require it. A standard scope at $125,000 plus $25,000 of targeted scope expansion typically costs less than a $200,000 maximalist scope.

Use the sell-side QoE as a buy-side input. If the seller commissioned a QoE before going to market, the buy-side QoE firm can often re-perform key analyses rather than building from scratch. This typically reduces the buy-side fee by 15% to 25% on lower mid-market deals.

Bundle QoE with tax due diligence. Many firms offer 10% to 15% discounts when QoE and tax DD are engaged together. The same partner team coordinates the work, and the buyer gets one consolidated diligence report.

Front-load the data room. A complete data room with monthly trial balances, customer-level revenue detail, and reconciled bank accounts before kickoff cuts 1 to 2 weeks off the timeline and prevents the auditor follow-up time that drives change orders. Sell-side advisors should pressure-test the data room before the buy-side QoE kicks off.

Sell-side QoE pays for itself on a clean process. A sell-side QoE issued by a credible firm before going to market typically returns 0.3x to 0.7x multiple expansion on a clean process by reducing buyer-side diligence cycles and pre-empting EBITDA add-back arguments. For a $10 million EBITDA business, that is $3 million to $7 million of incremental enterprise value against a $75,000 to $100,000 sell-side QoE fee.

Avoid the rush. A 2-week rush carries a 30% to 50% expedite premium and reduces the depth of the work. Plan QoE engagement to start the day the LOI is signed, not 2 weeks before close.

For a deeper look at what the QoE actually examines, see our QoE report guide. For the EBITDA normalization mechanics QoE work uncovers, see EBITDA adjustments explained. For the PE roll-up context driving QoE demand in 2026, see the 2026 CPA firm PE roll-up report and the Learn hub for the rest of the accounting and audit content.

Frequently asked questions

How much does a buy-side QoE report cost in 2026?

A buy-side QoE report costs $25,000 to $50,000 for sub-$5M EBITDA deals, $50,000 to $150,000 for $5M to $15M EBITDA deals, $150,000 to $300,000 for $15M to $50M EBITDA deals, and $200,000 to $500,000 or more for $50M+ EBITDA deals from a national mid-tier transaction advisory firm in 2026. Big 4 typically adds a 30% to 50% premium.

How much does a sell-side QoE report cost in 2026?

A sell-side QoE typically costs 10% to 20% less than a buy-side QoE on the same target, because the scope focuses on a clean presentation rather than buyer-side risk identification. A sell-side QoE for a $10M EBITDA business runs $65,000 to $100,000 from a national mid-tier firm.

Who are the top QoE firms in 2026?

Deloitte, PwC, EY, and KPMG (Big 4 transaction advisory practices) lead at the large end. RSM, Grant Thornton, BDO USA, CohnReznick, EisnerAmper, Crowe, and Baker Tilly dominate the mid-market. Alvarez & Marsal Transaction Services, Stout, Riveron, BPM, Plante Moran, and Aprio are the leading specialist boutiques. Each tier prices distinctly.

How long does a QoE engagement take?

Standard QoE engagements run 4 to 8 weeks from kickoff to final report. Sub-$5M EBITDA deals typically close in 3 to 5 weeks. $50M+ EBITDA deals with multiple subsidiaries typically run 6 to 10 weeks. Rush engagements under 4 weeks carry a 20% to 50% expedite premium and produce less depth.

Does a sell-side QoE actually pay for itself?

Yes, in most cases. A sell-side QoE from a credible firm typically returns 0.3x to 0.7x of multiple expansion on a clean process by reducing buyer-side diligence cycles, pre-empting EBITDA add-back arguments, and reducing the risk of price reductions during exclusivity. For a $10M EBITDA business at a 7x multiple, that is $3M to $7M of incremental enterprise value against a $65K to $100K sell-side QoE fee.

What is the difference between a QoE and an audit?

An audit (under GAAS) opines on whether financial statements are fairly presented in accordance with US GAAP. A QoE is not an audit. It is a transaction advisory deliverable that normalizes EBITDA, tests run-rate revenue, identifies working capital trends, and quantifies adjustments. QoE work is generally non-attest and does not produce an opinion.

Can a Big 4 firm do a QoE on a deal where they audit the seller?

Independence rules generally prevent the audit firm from issuing a buy-side QoE on the same target. The audit firm can, however, sometimes do sell-side QoE work for the seller, subject to AICPA Independence Rule 1.295 and SEC independence rules where applicable. Most Big 4 firms maintain Chinese walls between audit and transaction advisory practices.

Are QoE fees negotiable?

Yes. Most QoE engagements price on scope rather than time. Buyers should negotiate the included scope (number of years tested, working capital depth, customer cohort analysis, conference calls), the fixed-fee versus hourly cap structure, and the expedite terms. Competitive bid processes typically produce 10% to 20% price compression.

Should I get a QoE on a deal under $5M EBITDA?

It depends on deal complexity and buyer profile. PE sponsors typically commission a QoE on any platform investment regardless of size. Strategic acquirers often skip formal QoE on sub-$5M EBITDA tuck-ins where the integration synergy thesis carries the deal. Independent sponsors and search funds typically commission a lighter-scope QoE at $25,000 to $40,000 on sub-$5M EBITDA deals as institutional credibility for their capital partners.