The short answer
At Guardian, a buy-side quality of earnings runs $16,000 to $45,000, and most deals land around $20,000 to $25,000. The price is the same whether you engage us before or after you sign the LOI.
Two things drive it: how much work your deal needs, and the experience of the person doing it.
The more useful question isn't what it costs. It's what you're putting at risk. On a $1 million business bought with roughly 90% debt, you're personally guaranteeing about $900,000 you can't undo. The QoE is the last point where you can still change the price, the structure, or your mind.
Cheap means cheap. Thorough costs money.
A QoE is mostly time and judgment. Digging into the books, asking the seller hard questions and waiting for real answers takes time, and time costs money.
That's where cheap QoEs save. They do what's easy:
- They believe the seller's data. Digging and asking questions takes time, so they don't.
- They don't review the general ledger. They work from summary reports the seller hands over.
- They accept one-off files. Spreadsheets that don't come out of QuickBooks or the accounting system can't be traced back to the books, so they can't be audited.
- They want to get done and get paid.
A low quote that skips those steps isn't the same product at a lower price. It's a smaller product.
What drives the price
How much work the deal needs. More work means more hours:
- More entities, each with its own books to tie out.
- Messy books — catch-up entries, unreconciled accounts, a suspense account nobody can explain.
- Cash in the business, which is hard to trace.
- Material inventory, where someone has to establish whether it's counted at cost, at market, or estimated.
- A seller who answers slowly or not at all.
- A compressed timeline inside a 30- to 45-day diligence window.
The experience of the person doing it. Someone who has bought businesses and evaluated a lot of deals finds the problem faster and knows what it means for your decision. That judgment is part of what you're paying for.
Same price before or after the LOI
Guardian charges the same whether you engage us before or after signing. The work is driven by the business you're buying, not by where you are in the process. In practice, a full QoE needs the access you get after the LOI — the general ledger, bank statements, payroll and invoices — so most buyers start as soon as the LOI is signed, before they spend heavily on the purchase agreement.
What a cheap QoE can miss: three real deals
Revenue that wasn't revenue. A West Coast security business with $3 million of revenue claimed $1 million of profit and was priced at $4 million. It passed through QuickBooks, the bank statements and the tax returns. The problem was a large block of revenue no invoice supported. Asked for any ten invoices, photographed on a phone, within two days, the seller couldn't produce them. Money deposited from outside the business looks like sales on a bank statement. The bank had already underwritten the loan. The business was break-even. A QoE that believed the seller's data would have passed it. (Video: He Faked $1M in EBITDA, Here's How I Caught It)
$800,000 of add-backs that were wishes. A software business with about $1 million of revenue was break-even. The deal team wanted $800,000 of add-backs accepted for staff cuts, a new contract and a merger — all happening in the current month and none in the historical results. A QoE reports what happened. (Video: $800K of Wishes, Not Add-Backs)
Reported EBITDA $800,000. Actual: $0. Collin Hathaway's add-on acquisition was presented at $800,000 of EBITDA. The real figure was zero, and the recommendation was not to buy.
The other side: "The seller actually reduced their price by $1.5M after going over the reports," said Kishon Clayborne. Against a $20,000–$25,000 fee, that's the math.
How to compare quotes
Put the quotes side by side on:
- The general ledger. Will they review it, or work from summaries?
- Source files. Will they require exports from the accounting system, or accept seller-built spreadsheets?
- The bank. Will they tie the books to the bank statements?
- Documents. Will they test invoices and payroll records behind the numbers?
- Add-backs. Will they test each one, or accept the schedule? (See: How to Verify Seller Add-Backs Before You Close)
- Who does the work. Will you talk to the person forming the opinion during the deal?
- What happens after. Will they help you renegotiate or decide to walk?
Ask for a sample report: Guardian's Sample QoE Report.
Who pays for the QoE?
The buyer. You want the report working for you, not for the seller, the broker or the lender. Guardian isn't paid at closing, so the advice doesn't depend on the deal closing.
A sell-side QoE commissioned by the seller is useful context, but it was prepared for the seller. Treat it as a starting point, not a substitute.
Is a QoE worth it on a small deal?
Look at it against the bet. The fee is a small fraction of the personal guarantee, and one finding — a fake add-back, revenue no invoice supports, salaries you'll have to raise — can be worth many times the fee. If the deal is clean, you close with conviction. If it isn't, you renegotiate or walk. All three are good outcomes.
Who this isn't for
Guardian isn't the cheapest QoE, and it isn't built for lender-satisfying minimum diligence. If the question is who can produce a report for less, we're not the right firm. We're built for buyers who believe a seven-figure, personally guaranteed investment deserves the best independent judgment they can hire.
FAQ
How much does a quality of earnings report cost for a small business acquisition? At Guardian, $16,000 to $45,000, with most deals around $20,000 to $25,000. The price depends on how much work the deal needs and the experience of the person doing it.
Does an ETA or search-fund QoE cost more? No. The price follows the business being bought, not the buyer's structure.
Is a QoE cheaper before the LOI? No. Guardian charges the same before and after the LOI.
Why do some QoE quotes come in much lower? Because they do less: they believe the seller's data, skip the general ledger, and accept files that can't be traced back to the books.
How long does a QoE take? At Guardian, 2–4 weeks, so it fits inside a typical 30- to 45-day diligence window.
Have a signed LOI?
You get Elliott on your deal. No B-Team.
Related: How to Verify Seller Add-Backs Before You Close · How to Choose a Quality of Earnings Provider · Proof of Cash: How a Seller Faked $1M in EBITDA · War Story: Add It ALL Back · Sample QoE Report
