Whether you’re considering selling or purchasing a startup or an established business, an accountant’s advice can prove invaluable. Even if you’ve run your business for years doing your own accounting and only consulting an accountant for your taxes, it is critical to bring one on board before you sell your business or look to purchase another.

Why Seek an Accountant’s Advice Before Buying a Business?

With an accountant, you’ll have peace of mind of knowing you’ve made a savvy business decision based on knowledge, not speculation or instinct. Your accountant can play a critical role in buying a business while taking the burden of accounting off your shoulders.

An accountant can …

  • Analyze reports and statements, and uncover any issues you need to know
  • Verify if the company owns or leases assets like equipment
  • Compare historic and future debt-to-income ratios
  • Advise on the company’s structure and its tax implications
  • Help determine if the business is worth the asking price and your offer
  • Assist with business plans
  • Gather information and documents needed for business appraisals and loans
  • Help assure all due diligence has been handled

Why Seek An Accountant’s Advice Before Selling Your Business?

A serious buyer will expect perfect accounting records, as well as an accurate valuation. Fall short of those expectations and you may discourage true buyers and end up with a lower sale price.

An accountant can …

  • Substantiate your advisor’s evaluation and selling price
  • Produce and verify statements of accounts and financial records for buyer review
  • Present your business positively and accurately
  • Communicate with the buyer’s accountant to answer questions or concerns
  • Help you maximize profits from the sale by structuring it to minimize tax liability
  • Help assure all due diligence has been handled

Ultimately, hiring an accountant for mergers and acquisitions is the cost of your sanity and your financial future; it frees up the time you spend on financial tasks so you can spend it doing what you do best and enjoy most – running and growing your new business or moving on after the sale to your next venture.

For help with the purchase or sale of a business, contact the experienced accountants at Bedinghaus & Co. today!