When it comes to selling a business, most owners think about finding the right buyer or setting the best asking price. But what many don’t realize is that the single most important factor in a successful transaction is financial clarity. Buyers, lenders, and brokers all rely on accurate numbers to make decisions, and without them, even the most promising deal can fall apart. That’s why partnering with a skilled Certified Public Accountant (CPA) is one of the smartest moves a business owner can make before selling. As a Los Angeles business broker specializing in high-value transactions, I’ve seen firsthand how the right CPA can increase confidence, speed up deals, and even boost the final selling price.
The CPA’s Role in Business Sales
A CPA does much more than file taxes. They ensure that your financials tell the right story. When preparing a business for sale, CPAs help “recast” the numbers — removing personal or one-time expenses to show the true profitability of the business. This process, known as financial normalization, allows buyers to see the company’s actual earning potential, often resulting in a higher valuation.
For buyers, CPAs are equally valuable. They verify that the numbers presented are accurate, uncover potential risks, and advise on tax-efficient deal structures. Lenders also rely on CPA-prepared financials to approve SBA loans, making this partnership essential on both sides of the table.
Why Involve a CPA Early
The best time to involve a CPA isn’t when you’re ready to list your business — it’s at least 12–24 months before. This gives time to correct inconsistencies, improve reporting, and implement tax strategies that highlight profitability. Clean financials not only reduce buyer skepticism but also speed up due diligence and build trust during negotiations.
Broker + CPA Collaboration
As a broker, my role is to market the business, attract qualified buyers, and negotiate the best terms. But I can only do this effectively if the financials are strong and reliable. That’s why I work closely with CPAs throughout the process. Together, we present a transparent, compelling financial picture that builds buyer confidence and maximizes seller outcomes.
FAQ
Q: Can I sell my business without a CPA?
A: Technically yes, but you risk delays, lower valuations, and deal failures. A CPA adds credibility and clarity.
Q: How far back should financials go?
A: At least three years of tax returns and profit-and-loss statements are standard, though five years is ideal.
Q: Will a CPA make my business worth more?
A: Indirectly, yes. Clean and accurate books allow buyers to see true profitability, often leading to stronger offers.
Q: Should buyers use their own CPA?
A: Absolutely. Buyers should always have an independent financial review before purchasing.
Q: How much does a CPA cost for this process?
A: It depends on the complexity, but it’s always worth the investment given the potential increase in deal value.
Financial clarity is the foundation of every successful business sale. A trusted CPA not only prepares accurate books but also helps position your company as a valuable, attractive asset to buyers. If you’re planning to sell within the next few years, now is the time to strengthen this relationship.