When preparing to sell your business, you should be prepared to have your financials heavily scrutinized. A qualified buyer will be nothing if not thorough, so make sure your business looks good on paper. But keep in mind, papers that look good aren’t worth much if they don’t match up with reality.
From a buyer’s perspective, a business is worth buying if it shows good profitability, margins, costs, and expenses, all of which need to be clearly visible from your financials. The documents act as a sort of road map for your buyer. Reviewing them will spark questions, which will lead to more questions.
When preparing your business for sale, it’s a good idea to hire a mergers and acquisitions professional review the books, identifying any weaknesses that you may need to address before your business hits the market. In the meantime, you can give them a read-over to check for these 8 problems buyers will be looking out for.