The Successful Exit – Accurate Recast Financials

By Generational Equity


One of the most important items to check off as you work through your exit plan is your financials. Unfortunately, this is one of the areas that most business owners focus the least attention on.


Let’s face it, unless you are a CPA, spending loads of time with your financial docs is probably one of your least favorite pastimes.

However, the reality is this: As you approach your exit time frame, ensuring that your company’s financials are both accurate and “recast” is vital.

If you have a CPA working for you annually, the accuracy part of the equation should be straightforward. Recasting is the art of the deal as they say…

You see for years, you and your accounting team have substantially reduced your company’s earnings so that your tax liability is lessened. There is nothing wrong or illegal with this. It is a perfectly acceptable process of doing business.

But when it comes time for your exit, all those deductions need to be added back into your financials – and to do so accurately takes significant skill.

There is a reason why the valuation team with Generational has been recognized several times over the years as Valuation Firm of the Year. Our professionals in this group know not only how to find recastable items; they do so with documentation that buyers respect for accuracy.

Now you can probably hire your cousin Larry who is a retired semi-pro accountant to do your recasting. But will Larry stand by your side as you go through 300 due diligence questions, most relating to your financials?

Most likely not…

But Generational will

That is what makes our process so successful: We hire extremely talented, experienced professionals who can guide you through the entire exit journey.

As the old saying goes, you get what you pay for! Don’t go cheap when it comes to your financial accuracy and recasting. Hire pros who can not only guide you but protect your financial legacy.

To learn more about recasting financials, we have published several articles on the topic over the years:

But, most importantly, it is vital that you learn as much as you can about effective exit strategies, long before you begin the process. A great place to start is by attending a Generational Growth and Exit Strategy Conference. We hold these regularly throughout North America and business owners that attend rave about what they have learned

To learn more about how we can help you preserve and protect your financial legacy, please use the following links:

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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