Home | Tips | Tip #80: Financial statements are a company’s report card and the key to determining business value.
Sign up here to receive our monthly email cartoon tip for maximizing the value of your business.
Tip #80: Financial statements are a company’s report card and the key to determining business value.
There are many items that buyers for a business will want to see, but the most critical are the Profit & Loss Statements, Balance Sheets and Tax Returns for 3 – 5 years. These documents must be current, accurate and readily available. Buyers, their accountants and advisors will closely scrutinize these “report cards” which will serve as a basis to determine cash flow and value. In preparing a business for sale, these documents need to be collected, reviewed for accuracy and ready to be presented.
