When selling a business and engaging with a business broker, the business transfer agent will often request a list of financial records to build an accurate image of your business. Accounting reports and financial statements provide a window into the financial health of your business which is the foremost factor considered by parties when buying a business.
When pricing a business, accounting records and the financial history of your business will play a major hand in determining its value. A business valuation is largely based on how much similar businesses sold for. To determine the bracket within which your business sits, basic accounting records must be provided.
We run through the significance of having up-to-date accounting records to hand when selling a business, what records you should provide and why retaining such information can help bolster the sale process.