Question about off-market HVAC business dd

April 11, 2025

by a searcher in New York, NY, USA

I'm evaluating an off-market HVAC business and have a question around dd and financials. I have tax returns from###-###-#### but corporate tax returns for 2024 have until Oct 15th to file. I also have a P&L for 2022 and 2023 but was told they can't give me a P&L for 2024 until they file their tax return. Is that accurate? I'm also awaiting on a balance sheet as well. Is there any other documents I can request to evaluate the business in the meantime? Thanks.

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

They should be able to provide you a financial statement for###-###-#### I would be very suspect if they do not have something. How are they operating their business without solid financial reporting. If you are looking to finance the acquisition lenders are going to require the financial statement. At this point most lenders are going to want to see the last three years corporate tax returns, the 2024 year-end income statement and balance sheet along with a filed extension for their tax return, and interim financial statements for 2025 that are typically within 90 days. So they are going to have to provide you reporting if you expect to secure debt. You would not need the 2024 tax return to close most likely if on extension. But you would want to do a Quality of Earnings and verify the cash flow for 2024 that they collected. I hope this helps. If you have additional questions you can reach me here or directly at redacted

Reply by a searcher
in Philadelphia, PA, USA

Financial statements will only give you half the story. My experience is that operational due diligence is more important so you'll have to dig in and see who their customers are, who their vendors are and what they think about the company

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