M&A Advisor Tip: Confidence in Numbers
Most of our clients have CPA Compiled or Reviewed financial statements, and some go a step further with Audited statements. Reviewed financial statements are acceptable, and you can do even better with Audited statements a year or two before you sell.
With validated financial accuracy, you increase buyer confidence, shorten due diligence, and help get your company sold. We’ve had buyers tell us they’ll bid a quarter to a half to a full turn more on price/earnings multiples for a business with Audited financial statements.
As your business grows, a quarter turn can make a big difference in the purchase price that far exceeds the additional cost of an Audit.
For advice on exit planning or selling a business, contact Al Statz, CEO of Exit Strategies Group, Inc., at alstatz@exitstrategiesgroup.com.
Exit Strategies Group is a partner in the Cornerstone International Alliance.