Memphis Business Brokers Team
YOUR BUSINESS SALE
Separate Business Earnings From Owner Expenses
Your tax return and your personal take-home amount do not tell the same earnings story. A buyer needs records that explain what it costs to run the company after you leave.
Build a supported adjustment schedule
Start with the reported financial statements. Identify proposed adjustments individually and keep receipts, payroll records or other evidence for each item. See Memphis Business Brokers Team for sale guidance.
An expense is not an acceptable adjustment simply because you would prefer it excluded. Recurring costs needed to operate the business belong in the operating picture.
Account for the work you perform
List the jobs you do and the time each requires. If a buyer must hire someone to replace that work, the replacement cost matters.
Discuss with your accountant which earnings measure suits the business. Owner cash flow and profit after paying management answer different questions.
Keep financing separate from performance
Owner draws, loan proceeds and debt payments need clear treatment. Cash arriving in a bank account is not necessarily operating income.
A transparent earnings schedule helps a valuation conversation. It does not establish a guaranteed multiple or sale price.
Bring your questions to the conversation.
Use the valuation request form to outline your business and goals, or call (901) 555-0146.