Prepare Financials for a Sale

Create Consistent Historical Financials

Prepare at least three years of profit and loss statements and balance sheets, plus current year monthly results. Use a consistent chart of accounts and document reclassifications or material changes in accounting treatment.

Reconcile Revenue and Earnings

Revenue should reconcile across the general ledger, tax returns, billing systems, customer reports, and bank activity where appropriate. EBITDA and adjustments should tie clearly to source accounts.

Segment the Business

Buyers often need revenue and gross margin by customer, service, product, location, channel, end market, and recurring versus project work. Build these schedules before the request arrives.

Understand Working Capital

Organize accounts receivable aging, inventory, WIP, deferred revenue, accounts payable, seasonality, and cash conversion. Working capital mechanics can materially affect the amount delivered at closing.

Build a Supportable Forecast

A credible forecast connects pipeline, backlog, pricing, headcount, capacity, customer behavior, capital expenditure, and margins. It should explain the assumptions and show how performance will be measured.

Prepare for Professional Review

Depending on the transaction, buyers may require a quality of earnings review, tax diligence, or other financial analysis. Coordinate early with the company’s accountant, tax advisor, and other qualified professionals.

Turn the Guide Into a Company-Specific Plan

The useful next step is not collecting more generic information. It is identifying which items apply to your company, what evidence exists, what needs specialist review, and what can realistically be improved before buyer conversations begin.

Book a confidential sale strategy call or start with the Exit Readiness Checklist.