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Tricks To Creating Better Financial Statements When Selling A Business


If your financial statements are a mess it makes your job of selling your business that much harder. Potential buyers dig much deeper than just the bottom line. If your numbers are sloppy or don't make sense potential buyers may not trust them and decide to find a better opportunity.


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1/23/2017
Contributor: Rob Hartman, Business Broker, SF Bay Area   Post ID: 1134

The easiest way to validate your financial statements is to provide government entity required forms that match your financial statements. If you can provide your quarterly BOE sales tax returns for 2 or 3 years and the sales totals on those reports match your financial statements, a buyer will more readily accept the numbers you present.

While anyone can make up a spreadsheet or add additional sales to Quickbooks before printing a Profit and Loss Statement, it is highly unlikely that someone will overstate sales, and pay an additional 9 percent tax on fake sales, just to defraud someone years later into paying more for their business.

Once the sales figures are verified, what's left is full disclosure of all costs. which can be done by checking ratios and industry averages etc.


  Helpful Resources To Assist In Selling And Buying California Businesses
Joe Sandbank, Esq. - Legal Services

I have provided legal counsel to business buyers, sellers and brokers for over 17 years. With prior experience as a business broker and SBA loan officer, Joe brings both a practical and legal approach to all aspects of the business acquisition process.

Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services

Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.

Janet Carrera - Escrow & Bulk Sale Services - SF Bay Area

Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.

Diane Boudreau-Tschetter: Escrow And Bulk Sale Services

California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

Helen Yoo: Escrow & Bulk Sale Services - Southern California

New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Elizabeth McGovern: Escrow Services - SF Bay Area

McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.


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