Recasting Financial Statements

A snap-shot of financial performance.

One of the first things a buyer does when faced with a potential business that meets his or her financial and lifestyle criteria, is to consider the following factors:

How much money could I make with this business?
How much is the current owner taking home from the business?
How much has the owner taken in recent years?
What is the likelihood of this cash flow continuing?
What are the prospects for growth?
How many competitors are competing in your market place?
Why are you selling?

The answer to these questions will ultimately determine if a potential buyer will move on to the investigative stage (the formal “Due Diligence” phase) or not.

The seller’s ability to answer these questions concisely and clearly is very important in keeping a serious and qualified buyer interested.  Therefore, having an easy to read “snap-shot” of historical and probable future financial performance is fundamental to the process of selling a business.

Read more at:
Recasting Financial Statements

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.