The challenge is that many Main Street businesses don’t have pristine financials. Tax returns may show aggressive deductions. Internal profit and loss statements may not perfectly match tax filings. Owner perks are often mixed with business expenses. In industries such as restaurants, trades, home services, construction, and retail, this is extremely common.
Verify
Verify
Due Diligence on Main Street: What Happens When the Taxes Don’t Tell the Whole Story?
I’ve sold hundreds of businesses over the years, and one of the biggest misconceptions I see is that due diligence is simply about finding something wrong.
That’s not the purpose.
Good due diligence should give the buyer confidence.