You should prepare your property for sale by getting together the information, financials and working to make a transition more manageable. The first thing most buyers ask for is a Profit and Loss statement (P&L). Even though it is common for Sellers with multiple properties to provide website-specific financials instead of a company P&L, those financials need to be attractive to a Buyer, or the property just isn’t going to sell. Sometimes people take it too far.

Always ensure that, above all, your financials are accurate and provable. That means source documents need to be available to a Buyer on demand. They are required to confirm the validity of your claimed revenues and expenses (think of it as less invasive than your last audit or colonoscopy). Your business broker is your friend when it comes to selling your property. Still, our reputation also helps provide credibility to your sale, so we need you to be accurate, and anything provided is reviewed and vetted.

There’s nothing worse than mistakes, misleading, or inflated financials. Nobody wants to buy losses, debts, or a money-losing business unless there is potential for a significantly profitable turnaround. Ensure the books reflect actual business operations and reduce unnecessary or unrelated expenses, and, of course — ditch that salary you’re overpaying yourself for something realistic and fair. Need more consulting before sale? Just ask. [Continue Reading in XBIZ Magazine]