We recently participated in a panel discussion titled “Exit Chronicles—The Journey to a Successful Business Exit.” The panel featured practical advice from CPAs (including us), wealth advisors, estate planning attorneys, business attorneys, bankers, business brokers, and M&A advisors.
Here is the link for the whitepaper. Below, we’ve outlined 3 key takeaways from a CPA’s perspective.
Accuracy of Financial Statements – Precise and detailed financials are a cornerstone of transparency and aid potential buyers in making well-informed decisions about their interest in the business and about potential growth strategies.
Importance of having Comprehensive Financials – Looking at past performance helps to identify trends, while predictive analyses can anticipate future outcomes. Understanding deeper financial metrics like profit margins, key performance indicators, accurate forecasts, etc. is essential in providing a comprehensive view of the business’ financial health and reassure a buyer of ongoing growth.
CPA vs. Bookkeeper – Bookkeepers play a vital role in recording transactions, but a CPA offers more profound insights and strategic advice. CPAs can interpret financial data to help make informed decisions and prepare for due diligence. Good financials depict a business’ past and reveal its future. To succeed, business owners must be able to present a compelling narrative about the future, and this is where a CPA like us plays an important role.
Brunner Accounting was quoted, “For a successful exit, you need to be able to tell a story of the future. Good financials and forecasting are essential to attract buyers looking at your business potential.”