Get your figures clear and ready for a buyer's questions.
Financial preparation puts your accounts, management figures and cash flow into a shape a buyer and their accountant can read quickly.
Part of the Reads Pre-Sale Programme. Led by Ben Davies, Financial Preparation Specialist.
Why the figures decide so much.
A buyer's offer rests on what the accounts show, and due diligence tests every line. Clear, consistent figures mean fewer questions late in a deal, and fewer chances for the price to move.
In an HVAC business the first thing most buyers want to see is the split between service and maintenance income and design and install work, because they value the two very differently. If that split is not visible in your accounts, it needs to be.
What the work involves.
Separating the income
Service contracts, PPM and reactive callouts shown apart from installation and project work, with work in progress on larger jobs set out clearly.
Documenting add-backs
Personal costs, one-off items and family salaries above the market rate identified and supported, so a buyer can see what the business really earns.
Management accounts and forecasts
Current management accounts and a cash flow forecast, so the business can answer questions about this year as well as the last three.
Who leads it.
Ben Davies, Financial Preparation Specialist
Ben is a CIMA-qualified management accountant who founded LedgerFix Consulting after ten years at Nationwide Building Society. When a buyer needs the financial picture explained in plain terms, he is the one who does it.
Find out what your figures say now.
The valuation calculator gives a first indication from the numbers you already have, and it takes a few minutes.