10/30/2026
Years of business ownership create value, but that value needs to be supported by clear and properly prepared financial information.
Before selling, business owners should work with their accountant and advisors to review tax returns, P&Ls, owner compensation, discretionary expenses, and potential addbacks. Understanding which expenses are truly required to operate the business and which are specific to the current owner can help establish a clearer picture of normalized earnings.
Your tax returns show how your business has been reported. Your accounting records show how the business has performed. Together, they can provide important information for understanding the company's financial position and preparing for a valuation.
Good tax and accounting planning can become an important part of preparing your business for a successful transition.