Record Keeping Before Selling My Company

They say hindsight is 20/20.  Well, when it came to selling my company, it was certainly true.  There are a few things I wish I had known even before I decided to sell my company, that’s for sure.

I wish I had known that the buyer’s financial team were going to dig that deep into my financial records and statements.  It’s not that I had anything to hide, it was just a messy and embarrassing.  Continue…

Quality of Earnings: A Critical Component of Due Diligence

By Mason Myers , | April 7, 2015 (with permission)

One of the most important steps of selling a business is when a buyer performs a “Quality of Earnings” review of the seller’s financial statements.  The idea is that the buyer will verify the earnings of the underlying business and any “add backs” that the seller added to the earnings as a representation of what a new owner could expect to receive in cash flow.

Below are the basics of a Quality of Earnings due diligence project: