Prepare for Business Sale
Tighten financials, document everything, get ready for buyer scrutiny. Don't lose money because your books aren't ready.
When You Need This
- • Planning to sell within 6-18 months
- • Broker or advisor said "clean up the books"
- • Want to maximize valuation
- • Concerned about buyer due diligence
- • Financials don't tell the right story
- • Personal and business are mixed
Why This Matters
Buyers hire forensic accountants to find problems. When they find issues: they walk away, or they reduce the price, or they add earn-outs (you bear the risk).
Clean preparation prevents this. Average impact: $200K-$500K preserved valuation on $5M-$15M sale.
What We Do
- 1. Readiness Assessment - Review financials from buyer's perspective. Identify what needs fixing.
- 2. Clean Up Issues - Fix revenue recognition, expense documentation, related-party transactions. Make everything defensible.
- 3. Normalize EBITDA - Document legitimate add-backs: owner compensation above market, one-time expenses, personal costs.
- 4. Prepare for Due Diligence - Organize data room: 2-3 years financials, contracts, customer concentration, working capital analysis.
- 5. Support Through Close - Answer buyer questions, support quality of earnings review, coordinate with advisors.
How Engagements Work
Sale preparation engagements are scoped after initial assessment. Scope depends on: current state of financials, how far back needs cleaning, complexity of add-backs and adjustments, timeline before going to market, buyer due diligence requirements.
Typical timeline: Start 6-12 months before planned sale. Next step: Readiness assessment to determine what needs fixing.
What You Get
- • Clean 2-3 years of financial statements
- • EBITDA normalization schedule with documentation
- • Organized virtual data room
- • Due diligence support
- • Buyer meeting support
Real Example
Manufacturing business, $12M revenue - Family business with messy owner/business separation. Preparing for sale.
What we did: Cleaned 3 years of financials. Documented related-party transactions. Normalized EBITDA with $800K in supportable add-backs. Organized full data room.
Result: Sold for $14.2M vs. initial $12M offer. Passed due diligence cleanly. 30-day DD period vs. typical 90 days.
Common Questions
Q: When should I start?
A: 12-18 months before going to market. Minimum 6 months.
Q: What if buyer finds something?
A: If we've prepared properly, there shouldn't be surprises. If something comes up, we help address it.
Q: Do you work with brokers?
A: Yes. We handle accounting; they handle deal-making.
Planning to sell?
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