What the Quality of Earnings Does Not Show
A quality of earnings report tests whether earnings are real. This paper examines five operating gaps it leaves open in equipment and field service deals, and how to test them before close.
Independent operational and commercial advisory for private equity firms and portfolio companies in industrial, equipment, and field service businesses.
Grounded in industrial B2B experience, Melior Advisory helps evaluate operating risks, strengthen sales and service performance, and translate acquisition plans into practical operating priorities.

Four practice areas, before and after a transaction.

Examine the operating and commercial assumptions behind a business before the deal closes: how it sells, delivers, prices, and staffs its work.
Learn more about Operational and Commercial Due Diligence
Translate the acquisition plan into operating priorities, and coordinate sales, service, and branch practices without losing customers or key people.
Learn more about Post-Acquisition Integration
Assess how industrial B2B sales organizations find, win, and keep business, and where revenue leaks between the quote and the invoice.
Learn more about Sales Effectiveness
Measure service, repair, and maintenance performance: technician productivity, first-time fix, parts availability, and the profitability of service agreements.
Learn more about Service and Maintenance OperationsOperating Philosophy
Margins, cash conversion, and growth come from specific operating conditions.
In industrial, equipment, and field service businesses, the same conditions recur:
Melior Advisory examines those conditions directly, so investment and operating plans reflect how the business actually sells, schedules, delivers, and bills its work.
Start with how the work is sold, scheduled, delivered, and billed, and with the customer mix, labor model, and pricing behind the results.
Separate causes from symptoms. Rank issues by financial impact, operating risk, and what the organization can realistically change.
Translate findings into clear priorities that fit the organization's capacity, systems, and management attention.
Analysis on operations, service economics, and commercial execution.
All InsightsA quality of earnings report tests whether earnings are real. This paper examines five operating gaps it leaves open in equipment and field service deals, and how to test them before close.
EBITDA is a useful measure of operating earnings and a poor management objective, especially in asset-heavy service businesses.
In this article
In service businesses, many past-due receivables start in the field, long before an invoice reaches the customer.
Contracted service revenue earns its premium only when each contract covers its true cost to serve.
For operational diligence, integration planning, or questions about sales and service performance, contact Melior Advisory.
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