By Geoff Ling, MBA.
The cost of audited financial statements is typically minuscule relative to the value of a marketable company. We strongly recommend audited financial statements for sellers with more than $3m EBITDA, and smaller companies that should at least have reviewed financial statements for the last two years. Buyers have a strong preference for companies with audited financial statements for several reasons:
It reduces the time and expense they need to incur in due diligence
It is easier and faster to line up other capital providers (especially lenders)
It demonstrates that the seller is serious about getting a deal done