Documents Business Buyers Want to See 
What are buyers looking for
When buyers are looking for a business they want a safe investment. There are many factors such as the type of business, lease for premises, and the location that can influence a purchase. Surpisingly, the seller’s documents are one of the biggest concerns for the potential business purchaser. These documents have to do with the financials of the business, and include proof of the sellers revenue.
Both experienced and inexperienced buyers will want to see proof of financials. They want to see tax returns, profit and loss statements, bank statements, balance sheets, and whatever else they can get their hands on. This is because buyers feel they are taking enough of a risk to buy a business already, even if the business has perfect financials and a flawless business operation, they feel they are taking a risk. Those financials make buyers feel like they are taking a safer risk, they feel that they are driving with a safety belt instead of without one. If a seller does not keep good financials and they cannot offer undeniable proof of how much they make, it simply becomes a riskier transaction for the buyer.
Maximum Price
While it is true that businesses without good financials can still sell, it is not true that sellers will obtain a maximum price and not have good financials. If buyers go ahead with buying a business with poor financials, they will want a discount on the price to go along with that risk. As a business broker I hear from business sellers all time, “just bring in someone who has been in my industry before and they will be able to understand how much I make.” It almost never happens.
There is a double standard when business owners buy other businesses. Even if the business buyer has another business where they keep poor financials and have unreported cash in the business, they still demand that the seller offer them records to show proof of earnings that they themselves don’t have.
Well documented financials
The bottom line is that buyers from all backgrounds and experience will want to see good financial records when buying a business. It will help them determine the performance and the correct value of the business. Good financials will convince business buyers that they are making a safer investment, and they will also help business sellers obtain the highest price.
Our Location
Crowne Atlantic Properties, LLC
620 N. Wymore Road, Suite 260
Maitland, FL 32751
Office 407-478-4101
Fax 407-478-4099
For a map of our location please click here.
Contact Archie Ossin 
(407) 808-4287
Contact Jackie Ossin
(407) 616-5454
Contact Lee Ossin
(407) 375-9655
