Begin with records that reconcile
Bring the profit and loss statements, tax returns, and balance sheet into agreement before building a valuation story. An unexplained gap weakens confidence in every adjustment that follows.
Minneapolis Business Brokers Point connects your initial request with a partner who can discuss the records needed for an opinion of value.
Keep a current view of the latest twelve months as well as annual records. Explain changes in margins, staffing, and sales instead of relying on the best historical year.
Give every adjustment a reason
An owner expense may be an add back only if it will not remain as a normal cost for the buyer. Keep receipts and an explanation. A personal label does not make the adjustment valid.
For an owner operated company, seller discretionary earnings and adjusted EBITDA answer different questions. Replacing the owner with a paid manager changes available earnings.
Account for cash the business still needs
Equipment maintenance and working capital can consume cash even when the income statement looks strong. Identify recurring capital needs and seasonal low points.
Owner draws and distributions are not an automatic substitute for operating profit. Ask the valuation partner to explain the bridge from reported results to the earnings being valued.
Use the result to make a decision
A supportable range is more useful than a wish price tied to retirement needs. Buyers and lenders will test the assumptions against the records.
The purpose of the first review is to understand sale readiness and possible value. It does not guarantee a price or replace a formal appraisal when one is required.