Selling a Business
Do I Need Audited Financial Statements to Sell My Business?
2min
Do I Need Audited Financial Statements to Sell My Business?
When preparing to sell your business, one of the first questions that often arises is:
“Do I need audited financial statements?”
The short answer is — not necessarily. While audited statements can add credibility and assurance, they are not a requirement for most successful transactions.
At Merit Investment Bank, we help you determine what level of financial reporting is appropriate for your situation and your target buyer audience.
Audited Financials: Helpful, But Not Mandatory
An audit provides the highest level of assurance, as it involves an independent CPA thoroughly examining your financial statements to verify accuracy. These are especially valuable for larger companies or when selling to institutional or private equity buyers, who often require a higher degree of financial transparency.
However, for many middle-market transactions, an audit is not necessary. Buyers often find reviewed or compiled financial statements — prepared by a reputable CPA — to be sufficient. The key is that your financials are clear, accurate, and well-documented.
What Buyers Really Look For
Most buyers focus less on whether your financials are audited and more on whether they are consistent, transparent, and credible. Well-prepared financial statements help buyers understand the true performance of your business and instill confidence in the numbers you present.
Merit Investment Bank works closely with your CPA or finance team to ensure your financials meet market expectations — whether audited, reviewed, or compiled — so the process moves smoothly and efficiently.
The Bottom Line
While audited financial statements can enhance buyer confidence, they are not a barrier to selling your business. The most important thing is that your financials are accurate, well-organized, and professionally presented.
Talk to the Experts at Merit Investment Bank
Merit Investment Bank as a leading boutique investment bank is focused on entrepreneurial middle-market companies. Merit Investment Bank Executes sell-side M&A, buy-side M&A, and capital advisory services, debt and equity capital raises, corporate finance, and valuation services. Securities offered through Finalis Securities LLC Member FINRA/SIPC. Merit Investment Bank and Finalis Securities LLC are separate, unaffiliated entities.
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