Any buyer is going to want to review detailed financial information about the business or assets up for sale. The challenge for sellers is recognizing that specific types of buyers may require different information. For example, it might be important to present both GAAP financial statements in addition to deal-based financial statements. If these statements are not consistent, a seller should act early to bridge any differences. It is critically important during a sales process to avoid presenting inconsistent information to buyers as any information that cannot be reconciled or bridged will erode buyer confidence and, therefore, the perceived value of a business.
The need to be consistent and reasonable also extends to any projections and forecasts a seller wants to present to buyers. Supporting forecasts with realistic assumptions and data can help with alleviating the concerns of potential buyers who might otherwise argue that highly optimistic forecasts are unfounded.