In the world of mergers and acquisitions, numbers can be deceiving. Just ask Hewlett-Packard. In 2011, HP acquired UK software company Autonomy for over $11 billion—only to write down $8.8 billion the following year, citing “accounting improprieties and misrepresentations” [source]. This costly oversight highlights a critical truth for investors and acquirers: financial statements alone don’t tell the full story. To truly understand a business’s performance and value, a deep-dive Quality of Earnings (QoE) analysis is essential. What Is a Quality of Earnings (QoE) Analysis? While audits verify whether a company’s financial statements adhere to accounting standards, a QoE analysis goes …