Business Buyers: Listen for These "Buzzwords" When Talking to Sellers:
September 19, 2024
by a professional from James Madison University in Washington, DC, USA
What? So What? Now What?
➡️ What? When discussing a prospective business with a seller, listen for these "Buzzwords"—they may indicate areas that need further scrutiny:
"WIP" (Work in Progress) "Percent of Completion" "Backlog" "Retainage" "Job Costing"
What Does This Mean? These "Buzzwords" are accounting methods which are complex and can be manipulated. Without careful review and a trained eye you may overlook inaccuracies in the financials.
➡️ So What? If you hear these terms when considering buying a business, take them seriously. They mean you need to look closer at the financials.
➡️ Now What? Hire a U.S. CPA who specializes in M&A. They can verify these records and ensure the accounting is done correctly, reducing your risk.
➡️If you have questions or would like to learn more, send me a message I would be happy to connect.
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