Tip #126: So what’s the big deal over the Balance Sheet?

Tip 126: Buyer wants business owner to first pay off debtsThe balance sheet becomes a very important document in the sale of a business. It can show the big picture of what a buyer is really going to acquire. It shows the assets that are current and may not go with the business and the long-term assets that the buyer will expect to be productive in the future or may need to be replaced. And the amount and types of liabilities can really tell the story of how well the company has been doing and bring to light who has to pay them off. Business owners must understand what the balance sheet is disclosing and what needs attention to get maximum value for their business.

Check out this helpful article from Investopia: Reading the Balance Sheet.