What is Quality of Earnings (QoE) in M&A?

A Quality of Earnings report evaluates how accurately a company's historical earnings represent its future performance. It identifies one-time revenues, owner add-backs, and accounting anomalies to ensure the buyer knows the true sustainable cash flow.

How do you help business sellers prepare for an acquisition?

We help sellers clean up their balance sheets, normalize EBITDA, resolve lingering tax liabilities, and structure the sale (asset vs. share sale) to maximize the Lifetime Capital Gains Exemption (LCGE) and minimize terminal tax.

What is the difference between a share sale and an asset sale?

In a share sale, the buyer purchases the shares of the corporation, assuming all historical liabilities, while the seller may claim the LCGE. In an asset sale, the buyer purchases specific assets (equipment, goodwill) leaving the corporate shell and liabilities behind. We model the after-tax cash flow of both scenarios.

Advisory Services

M&A Financial
Due Diligence.

Whether you are acquiring a competitor or preparing for an exit, we provide the financial clarity and tax structuring needed to maximize your deal value.

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De-Risking Your Transactions

Buying or selling a business is often the most significant financial event in an entrepreneur's life. However, without rigorous financial due diligence, buyers risk overpaying for hidden liabilities, and sellers risk leaving millions on the table due to poor tax structuring.

At Teixeira Accounting, we act as your financial shield during M&A transactions. We dig deep into the numbers to uncover the true sustainable cash flow of the target company and model the after-tax implications of the deal structure.

Buy-Side Due Diligence

For buyers, we focus on validating the target company's financial assertions:

Quality of Earnings (QoE): Normalizing EBITDA by identifying one-time expenses, owner compensation, and non-recurring revenues.
Working Capital Analysis: Determining the normalized net working capital required to operate the business post-close.
Tax Exposure Review: Identifying unrecorded CRA liabilities, pending audits, or aggressive tax positions taken by the seller.

Sell-Side Preparation & Structuring

For sellers, preparation begins years before the transaction. We help you maximize your exit value:

Pre-Sale Clean Up

Removing redundant assets and normalizing financial statements to present a clear, attractive picture to buyers.

LCGE Optimization

Structuring the corporation to ensure the shares qualify for the $1.25M Lifetime Capital Gains Exemption.

Deal Structuring

Modeling the after-tax cash flow of an asset sale versus a share sale to negotiate the optimal structure.

Earn-Out Modeling

Evaluating the financial mechanisms and tax implications of earn-outs and vendor take-back (VTB) mortgages.

Why Choose Teixeira Accounting?

At Teixeira Accounting Firm Inc., we don't just record history; we write your financial future. Most accounting firms are reactive—they wait for you to bring them problems. We are proactive architects of your wealth and business growth.

Whether you're a scaling enterprise or a high-net-worth individual, we provide the strategic oversight, tax optimization, and bulletproof compliance you need to operate with absolute confidence.

The Teixeira Advantage

Proactive Tax Strategy

We don't just file your taxes; we actively look for ways to reduce your tax burden year-round.

Bulletproof Compliance

Our rigorous quality control ensures your filings are accurate, minimizing audit risk.

Dedicated Advisory

You get a dedicated partner who understands your business deeply, not just a once-a-year tax preparer.

Navigate Your Transaction with Confidence.

Don't leave deal value to chance. Let our experts handle the financial due diligence.

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M&A Financial Due Diligence.