I don’t see the benefit of “accrual” financials or “clean” books to sell my business. I’ve built my business on gut and intuition, and I’m an expert in making decisions for my business.

Have you ever been shopping for a new grill? So many to choose from, so many styles, tensile strength, wood versus propane, steel versus ceramic, portable or built-in, smoker or not. It’s confusing, not to mention the instructions to build. Imagine if you have a lot of cash and want to buy the best. You’d want a knowledgeable salesperson, a reputable brand, value for your money, easy-to-assemble instructions and a lifetime warranty. Not to mention that warm-fuzzy feeling of being the man with the plan, grilling fork in hand as you make the best steaks your friends have ever eaten. It’s the same thing with buying a business. If the books are on a cash-basis and “iffy” at best, you don’t get a warm feeling as a buyer. If there are no financial management reporting mechanisms, budget to actual comparisons, key performance indicators, 3-year projections, forecasts and more, it makes it tough for the buyer to get comfortable that what you say they’re buying is reality. Has your company really recorded $10m in sales? Are your gross margins really at 65%? Are your assets and liabilities properly recorded? All of these are important considerations that the buyer requires to decide whether to buy you, or your competitor down the street. Remember – perception is reality, and in this case, a deal-breaker.