We make
your business
work for you.
Joan M. Ridley
Pres., CFP™, CEPA, CBI

2911 Turtle Creek Blvd., Suite 300
Dallas, Texas 75219

E-MAIL:  info@businesswealthsolutions.net
PHONE: 214.692.9192
FAX: 214.523.9001

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Numbers Tell the Story When Preparing to Exit


Joan M. Ridley, CFP™, CEPA, CBI

Business owners commonly view financial recordkeeping as a necessary task that must be done so the accountant can prepare tax returns and other filings. If you are like most business owners, you judge your accountant‘s performance by the amount of taxes you pay, or, how much you don’t pay. But financial record keeping is so much more than tracking of income and expenses for tax purposes. Quality financial record keeping, quality being the operative word here, reveals much more about a business than most business owners realize. To a trained eye reading between the lines, the numbers indicate a great deal of information about the business and the business owner that is critical for a potential acquirer, lender, investor, and anyone else involved in the growth and exit process.

Here is a very short list of what the numbers can
reveal either directly or indirectly:

  • Past performance
  • Prognosis and trends for future performance
  • Depth or quality of management
  • Operations efficiency or inefficiency
  • Seasonality and cyclicality of revenues
  • Vendor concentration and relationships
  • Attitude toward employees and employee loyalty
  • Quality of customers
  • Quality of product and services
  • Financial soundness of the enterprise
  • Expertise and tolerance of accountant
  • Effectiveness of the sales management system
  • Customer diversification
  • Owner's credibility
  • The value of the business
  • The ability to cover debt service
  • Where value can be added
  • Synergistic opportunities

Business Wealth Solutions helps business owners grow and harvest their wealth. Once we are clear about our client’s personal goals, we gather both personal financial and business information which results in preparation of a Personal and a Business Action Plan. If the books are set up correctly, and if the data is entered correctly, we can identify and prioritize opportunities to increase profitability and value in preparation for converting the wealth that is trapped in the business into liquid wealth. Further, with quality financial record keeping, potential acquirers, bankers, and investors will be able to accurately assess your company and their interest in it. To learn more about our unique process, please visit our website at www.businesswealthsoutions.net.


Joan M. Ridley is president of Business Wealth Solutions, a Dallas-based advisory firm that consults with business owners about how to successfully grow and leave their business. Visit our website at www.bwsllc.net. Call us today at 214.692.9192 for a complimentary meeting to learn how we can help you get where you want to go.

Copyright 2010 Joan M. Ridley

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