Question 1

What is a Quality of Costs audit?

Accepted Answer

An independent, flat-fee review of a target's cost structure and supply chain — the operational counterpart to a Quality of Earnings report. A QoE confirms the earnings are real; a Quality of Costs audit tells you whether they'll survive the supply chain.

Question 2

Who is a Quality of Costs (QoC) Audit for?

Accepted Answer

Lenders of manufacturing, industrial, and distribution businesses (SBA-sized and lower-middle-market), the group's acquiring them, and sellers who want to get ahead of buyer diligence when planning a sale.

Question 3

How is it different from a QoE?

Accepted Answer

A QoE is backward-looking and accounting-based — it validates the reported numbers. A Quality of Costs audit is forward-looking and operational — it tests whether the operation that produces those numbers can keep producing them. They're complementary.

Question 4

How do I get started with APS?

Accepted Answer

Book a short, free scoping call. We'll ask a few questions about the deal and tell you whether a Quality of Costs audit fits — and what it would cover.

Question 5

What exactly do you deliver?

Accepted Answer

A formal report covering 5 core modules. Supplier & Supply-Chain Concentration

Top suppliers by spend, critical suppliers, single/sole sources, alternate qualification timelines, contract status, geographic concentration and geopolitical exposure.
Inventory Quality

Excess and obsolete inventory, safety-stock logic, lead-time coverage, inventory accuracy and cycle-count discipline.
Product & Component Continuity

BOM analysis, lifecycle/EOL exposure, substitution difficulty, tooling ownership, customer-approved-source restrictions and redesign/certification exposure.
Procurement Maturity

PO coverage, contract coverage, sourcing process, payment terms, competitive bidding, price-change controls, supplier scorecards, ERP/MRP usage, segregation of duties and key-person dependency.
Operational Earnings-at-Risk

Translation of operational findings into EBITDA/cash flow exposure.

Question 6

Do you value the business or interpret contracts?

Accepted Answer

No. We don't assign valuations, opine on what a contract requires or whether it's enforceable, or attest to the financials. We flag operational risk and share with the acquirer and/or lender.

Question 7

How fast is it, and can it be financed?

Accepted Answer

Five business days once we have the information required from Seller. It's built to be a financeable closing cost — funded from loan proceeds like the appraisal or the environmental report — so it adds diligence without adding out-of-pocket cost to the borrower. Ask your lender for clarity on whether the cost is financeable.

Question 8

Do you also do Procurement Consulting?

Accepted Answer

Absolutely, but separately. After you own the business, our performance-based procurement work turns the cost opportunities into recurring EBITDA subject to a separate engagement letter. This is a separate product tailored at driving the improvements outlined in the QoC.

Expert Operational Due Diligence for Business Acquisitions.

A Quality of Earnings report tells you the earnings are real. Operational Due Diligence tells you they'll survive the supply chain in year 1 and beyond.

With 10+ years of M&A experience & supply chain excellence at fortune 500 groups, we are your go to resource for QoC audits.

The operational counterpart to your
QoE, the QoC.

WHY CHOOSE APS

Don't wait. Protect your investment today.

FREQUENTLY ASKED QUESTIONS

What is a Quality of Costs audit?

Who is a Quality of Costs (QoC) Audit for?

How is it different from a QoE?

How do I get started with APS?

What exactly do you deliver?

Do you value the business or interpret contracts?

How fast is it, and can it be financed?

Do you also do Procurement Consulting?

Expert Operational Due Diligence for Business Acquisitions.

A Quality of Earnings report tells you the earnings are real. Operational Due Diligence tells you they'll survive the supply chain in year 1 and beyond. With 10+ years of M&A experience & supply chain excellence at fortune 500 groups, we are your go to resource for QoC audits.

The operational counterpart to your QoE, the QoC.

WHY CHOOSE APS

Don't wait. Protect your investment today.

FREQUENTLY ASKED QUESTIONS

What is a Quality of Costs audit?

Who is a Quality of Costs (QoC) Audit for?

How is it different from a QoE?

How do I get started with APS?

What exactly do you deliver?

Do you value the business or interpret contracts?

How fast is it, and can it be financed?

Do you also do Procurement Consulting?

A Quality of Earnings report tells you the earnings are real. Operational Due Diligence tells you they'll survive the supply chain in year 1 and beyond.

With 10+ years of M&A experience & supply chain excellence at fortune 500 groups, we are your go to resource for QoC audits.

The operational counterpart to your
QoE, the QoC.