Quarterly Q&A – Spring 2019

Q: Do I need to provide monthly financials to potential buyers or are annual tax returns with requested extensions good enough?

A: Most M&A Intermediaries will send the potential buyer adjusted or normalized financial statements as a part of the buyers package once they have signed a non-disclosure agreement.  This gives the potential buyer a good idea of the overall financial stability of your company.  But as the negotiations move forward it is good to give the buyer monthly financials so that any seasonality that might exist in your cash flow can be identified ahead of time so there are no surprises for the buyer once the deal is done!

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  1. oprolevorter June 25, 2019

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