Ever wonder what happens when the numbers don't add up during a business sale? When the quality of earnings report lands, it can either confirm your business valuation or send your deal into a tailspin of renegotiations.Russell Cohen pulls back the curtain on what he calls "a colonoscopy on steroids" - the intensive financial investigation that private equity groups conduct before finalizing an acquisition. This critical phase exposes the gap between how entrepreneurs manage their books and the GAAP accounting standards institutional investors expect, often revealing uncomfortable truths about a business's true financial performance.The podcast explores the red flags that commonly trigger post-QOE price adjustments: declining revenue trends, miscalculated job costs, improper worker classifications, inadequate insurance coverage, and ownership structures where real estate complicates valuation. Through real-world examples from his current deals, Russell demonstrates how these issues play out in practice and shares creative solutions for keeping deals alive despite financial discrepancies.What becomes clear is that leverage in these sensitive negotiations often comes down to a simple question: who wants the deal more? A motivated buyer facing pressure to deploy capital by year-end may accept compromises that preserve headline valuations while adjusting payment structures. Conversely, a seller without urgency maintains significant power to hold firm on price or walk away entirely.For business owners years away from selling, the message is simple but crucial: start preparing now. Invest in professional accounting, build management depth beyond yourself, ensure comprehensive insurance coverage, implement proper employee benefits, and maintain regulatory compliance. These foundations, established at least three years before a planned exit, create resilience that can withstand the scrutiny of acquisition due diligence.Ready to start your exit planning journey? Contact Russell to begin positioning your business for a successful sale, whether your timeline is measured in months or years.

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