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The Advantage of Reporting All of
Your Sales
by
Steven D. Zimmerman,
Restaurant Realty Company
October 1999
By reporting all of your sales you
will have a better opportunity of
maximizing the value of your
business when you sell your business
for the following reasons:
1. The
value of your business is
largely determined by the
financial statements you will be
presenting to a prospective
buyer. If all of your sales are
reported you will show higher
profits which will increase the
value of your business as the
value of your business is
largely determined by a multiple
of yearly profits.
2. A
prospective buyer will view your
business with more credibility
and is more likely to believe
the representations and
disclosures you are making
regarding all aspects your
business in terms of the
operating, marketing and
financial aspects of the
business.
3. It
will be easier for the buyer to
get third party financing such
as bank loans, SBA loans or
private investor financing.
4. The
buyer will be much more
objective in evaluating the
future upside potential of the
business.
5. You
will sleep better at night!!!!
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