What documents do I need to show potential Buyers?

These are high-level financial documents that give potential buyers an indication of your success and will tell them off the bat whether they're interested in your business or not. You should limit this information to a few key documents because you don't want to divulge too much information until you know the buyer is qualified.

YTD Income Statement

The year to date (YTD) income statement shows your business’s revenues, costs of goods sold (COGS), operating expenses, as well as operating profits and net profits. This is the document potential buyers will look at when assessing profitability and valuing the business using industry multipliers.

YTD Balance Sheet

The year to date (YTD) balance sheet breaks down your business’s assets (equipment, money owed business, goodwill) and liabilities (loans, debts, liens, other money business owes). Having this document ready gives your buyers a one-stop resource for seeing the assets and debt of the business.

YTD Cash Flow Statement

Your cash flow statement is basically a breakdown of all the money that comes in and goes out of the business, including net gain. You’ll see your operating, investing, and financing cash flow for your business which can answer a lot of  questions your potential buyers will have. And it tells the buyer how much working capital the business actually has to work with each month, which is what really matters.

Tax Returns For the Last 3 Years

Buyers are going to want to confirm that you have filed and paid taxes for the business. Also, they will look at revenue, net income, and tax payment numbers to confirm that the financial statistics you’ve provided them with your financial statements are correct.

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For more information on selling your business click here or to speak with a member of our Business Sales team call us on 053 9170507