Financial & Accounting Diligence

Over 50% of sellers grossly overstating profits.

Each dollar of overstated profit means an investor loses 4-8 times that amount on valuation.      

Inexperienced buyers lose most.  Use our experts to give yourself the best chance of success.

 

Review of Financials

3 years historical plus year to date monthly financials (income sheet, balance sheet, cash flow statement). 

 

Review of Tax Returns & Bank Statements

3 years of historical tax returns & 3 years of bank statements.  

Review of Non-Recurring Expenses

There are typically some expenses incurred under former ownership that will not be part of the business under the buyer’s ownership.  

Proof of Cash

Mission Critical.  Reconcile & ensure that company provided financials match their bank statements.  (*sample available)

Business Operating Model

How does the business make money? What drives the revenue up and down. What drives the costs up and down?  

5-Year Pro Forma Projection

Five year financial projections taking into account the deal structure and amount of debt to service after the deal closes.