M&A: Prepare Solid Books and Records

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Newport LLC

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When preparing to sell your company, have your books and records well organized and professionally prepared.  Another thing we have seen quite often is how shoddy these records can be in an otherwise impressive business.  We get it…solid bookkeeping and accounting is not fun.  But when it is time to sell, good records translate to a smoother sale process and even a higher price.  If potential Buyers see shoddy records, they assume you run your business in a shoddy manner and they will either walk away or present an offer becoming of a shoddy business.

When we talk of solid books and records, this means:

  • Clear accounting records prepared in accordance with standard accounting practices;
  • Reporting that already reflects any adjustments needed to support the EBITDA, as well as the balance sheet, that you intend to use as your basis for valuation;
  • Retention of and easy access to all receipts, bank records, credit card statements, and other documentation supporting the accounting records; and
  • A clear understanding by you of the books and records, and the ability to explain and, if necessary, defend them.

You may still sell your business with poor books and records, but we can almost guarantee you will leave a lot of money on the table.

We at Newport specialize in working with our clients to ensure they are ready in every material way for a capital event.

Check us out here.

David Traversi, Partner, Newport (

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