Quality of Revenue (QoR) Diligence

Quality of Revenue (QoR) Diligence

Private equity investors are increasingly focused on growth to drive returns, yet many overlook a target’s go-to-market and pricing capabilities during diligence. Quality of Revenue (QoR) diligence fills this gap. While Quality of Earnings (QoE) assesses the accuracy of historical financials, QoR is forward-looking: it evaluates the sustainability and growth potential of a target’s revenue engine. Market diligence is also forward-looking but is silent on a target’s likelihood of executing against its market opportunity. QoR’s fact-based forecast of a company’s revenue performance provides deal teams with a data-driven edge and enables greater conviction when bidding. QoR is as essential as QoE and market diligence for every target whose revenue relies on a salesforce.