The Financial Analysis Statement

Selling your business is a complicated matter. Potential buyers have a variety of reasons for purchasing. You can sell companies to a potential buyer interested in investments, adding capacity or adding diversity to a product line. Although the business sale agreement information required in each case is the same, how you present the financial statement and what you emphasize can make a big difference.

To prepare for possible acquisition a valuation or analysis of financial records will be required for the buyer’s due diligence. Operations Analysis and a Financial Statement Analysis are a must to determine your company’s worth. The Financial Analysis should produce a Cash Flow Analysis that lists income, revenue steams, expenses and liabilities. This is done in co-ordination with your legal and accounting teams or a group we may recommend.

Next is the preparation of the Prospectus. This is a confidential overview for the prospective buyers to provide them with specific information necessary to make the investment decision.

Once the Prospectus is accepted, the potential buyers will want to meet with management for which we develop a formal presentation booklet customized to each prospective buyer. Prior to the meeting we advise, develop and practice the presentation with management. We can participate, if desired.