By reporting all of your sales you will have a better opportunity of maximizing the value of your business when you sell your business for the following reasons:
- The value of your business is largely determined by the financial statements you will be presenting to a prospective buyer. If all of your sales are reported you will show higher profits which will increase the value of your business as the value of your business is largely determined by a multiple of yearly profits.
- A prospective buyer will view your business with more credibility and is more likely to believe the representations and disclosures you are making regarding all aspects your business in terms of the operating, marketing and financial aspects of the business.
- It will be easier for the buyer to get third party financing such as bank loans, SBA loans or private investor financing.
- The buyer will be much more objective in evaluating the future upside potential of the business.
- You will sleep better at night!!!!