Financial Statements

Cash Flow Statement

A report showing how cash enters and leaves the business. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Income Statement

A report showing revenue, expenses, and profit over a period of time. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Balance Sheet

A report showing what the business owns, what it owes, and owner equity at a point in time. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Cash Flow

The actual cash moving in and out of the business. Why it matters: A profitable business can still run short on cash, so buyers study cash flow to see whether the company can pay bills, fund growth, and support debt.

Advisor

A professional who helps with the sale, such as a broker, M&A advisor, CPA, attorney, or investment banker. Why it matters: The right advisor can help prepare materials, explain tradeoffs, manage buyers, reduce surprises, and keep the owner from negotiating complex deal terms alone.

Buyer

The person, company, investor, or fund trying to buy the business. Why it matters: Different buyers value different things, so knowing the buyer type helps an owner understand likely questions, risks, financing needs, and negotiation style.