Build a bridge from your books to owner benefit
Gather annual tax returns, profit and loss statements and current monthly accounts. Explain any differences instead of sending numbers that appear to contradict one another.
A bank loan or proceeds from selling equipment are not ordinary operating earnings. Owner draws also need explanation; money transferred to a personal account is not automatically a valid addback.
Support every adjustment
List unusual expenses and personal costs separately, with evidence. A buyer should be able to trace each adjustment rather than accept a rounded number for owner benefits.
Seller’s discretionary earnings considers the benefit to one working owner. Adjusted EBITDA instead accounts for a market salary for management. Ask which measure fits your company and likely buyer.
Make the current year part of the story
Keep your balance sheet current and reconcile the books. An asset you sold years ago should not still appear as equipment a buyer expects to receive.
Explain margin changes, major customers and seasonal working capital. Buyers fund a business they understand today; an unsupported forecast is not a substitute for earned profit.
Compare the payment terms behind an offer and the cost of the premises before judging net proceeds.
Prepare your transfer paperwork alongside the accounts. When ready, request a private valuation introduction.