GROFINEX

GUIDE

Financial statements buyers want

What a buyer is trying to reconstruct.

Three years, if you have them

Buyers usually want to see revenue, profit, and the add-backs you claim, across more than one year. A single good year is a story. Three years is a pattern. If you only have one year, say so.

Tax returns and internal statements that do not match need an explanation before a buyer finds the gap. We do not audit statements and do not give tax advice.

Cash that is not profit

Debt, taxes due, inventory that will not sell, and owner compensation above or below a replacement manager all change what a buyer thinks the company earns. Put them in the note with the numbers.

The preliminary range uses what you submit. It does not verify it.

Questions

Should I send statements through this article?

No. Use the sell form if you want a range. Do not email account numbers to a public address that has not been set up for that.

What is an add-back?

An expense the seller says a buyer would not have to pay. A buyer may disagree. Treat it as a claim, not a fact, until it is documented.

Related

See What Your Business May Be Worth