Typically, we receive three years of business tax returns as well as three years of Profit & Loss Statements. These are the most important financials because these are the numbers that potential buyers will want to see during due diligence.
We use the 3 years worth of financials to provide a financial recast for the business and highlight the owner's benefit which is the Seller's Discretionary Earnings (SDE). These financial statements will also be required by lenders if financing is involved in the purchase.
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