When selling a business, it's not enough that you yourself are convinced of the price — you need to be able to document it to a buyer who doesn't know the business beforehand and will naturally be skeptical of figures that can't be substantiated.

What does a buyer look for when assessing your price?

Consistent accounting figures

Consistency between annual accounts, VAT filings and bank statements is one of the first things a serious buyer — or the buyer's accountant — checks during due diligence. Discrepancies here create distrust, even when they have an innocent explanation.

Normalized earnings

If the business has one-off income, an owner's salary below market rate, or other items not reflecting ongoing operations, they should be adjusted out, so you present an accurate, "normalized" result — not an artificially inflated number.

Documented customer base

If you can show recurring revenue, customer retention, or long-standing contracts, it strengthens the price far more than a vague claim about "loyal customers".

How to build the documentation

  1. Gather 2–3 years of accounts and an up-to-date balance sheet — see how they feed into a business valuation.
  2. Prepare a normalized income statement showing the genuine operating earnings.
  3. Document the customer base — revenue by customer, contract lengths, recurring income.
  4. Gather key contracts and agreements, so a buyer doesn't have to request them individually along the way.
  5. Use industry comparisons to substantiate why your specific multiple is reasonable — see how to calculate the value yourself.

What weakens your documentation?

  • Figures that don't reconcile across accounts, VAT filings and bank statements.
  • Projections with no visible track record to support them.
  • Missing answers when a buyer asks for clarification — silence creates more distrust than an honest "let me look into that".

When should you get help with the documentation?

If the business is large or complex, an accountant or a professional advisor can help structure the documentation so it comes across as coherent and credible from the first meeting with a buyer. Read about what our Advisory & Mediation package includes, or get started yourself with our free valuation tool.

Got your documentation in order? Create your listing, and show buyers that the price holds up.

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