Even the most up to date company is going to have challenges preparing for a business
transition. While most companies have kept their books current and have an
accountant reviewing their financials (usually as they prepare tax filings), the
information required for a sale or acquisition can be daunting.
Many buyers will ask for audited financials. There is a major difference between
reviewed and audited financials. An auditor will look beyond the numbers, trying
to ascertain where they came from, how they are used, and how well each
purchase, sale and payroll account is documented.
Consulting with a CPA who has audit experience can greatly reduce your eventual costs as
you come to transaction time. There are many steps you can take today that will
not only give your upcoming due diligence and closing a greater chance of
success, they will also help you run your company more efficiently - driving
Additionally, you will want to prepare personally for the results of a transaction. You will
need to measure the tax implications of various exit events, and form a game
plan ahead of time.
Redtail Capital can work with your current CPA firm or we can recommend a great team in
your area. Our network of professionals extends into every business discipline.