Thanksgiving is one week away, and before you know it so will be the holidays, and into 2024! Wow, time goes fast! The end of the year is a time that many business owners start contemplating a potential sale of their business as most businessed are on a calendar fiscal December 31, year end.
On average it takes 9-12 months to sell a business. While there are many important components of selling a business, confidentiality being first and foremost, on the subject of finance- having accurate, detailed, up to date P&L statements is crucial to start planning a potential business sale. Having this information, will allow for our producing a business owners valuation, which is an agggregate of the last three years of financials. How your business is valued will be the subject of a future blog.
Having copies of at least three years of corporate tax returns, P&L statments, and balance sheets is a an important and necessary step to the process to prepare.