Messy Accounts Mean Sale is Numbered
By Jeff Kelling – M&A Advisor
Clean up your books before a sale. Have your financials audited or bring in an expert to get your accounting numbers as solid and accurate as possible.
Studies have shown that the more specific you are with your numbers, the more trust you establish and the better your negotiating position.
Go into a sale with a “general picture” of what’s going on in your books, and expect some pain (and maybe even a little heartache) in due diligence. The buyer, along with their lending partner, is going to want a clear understanding of the financial picture before they commit to a deal.
If they can’t get that, you’ll lose value or maybe even lose the deal altogether.