I have a client that showed me this and said "I don't understand why they're running negative every year."
So let me break this down on how I would analyze this...
1. This is NOT Taxes it's a P & L that shows 4 months
2. We need 2021, 2022, 2023 taxes AND
3. A P & L that is through August or YTD NOT through April
4. This company is under the impression that if they write literally every ... single ... thing off they will benefit
5. The broker hasn't told them that's hurting and more or less ruining the sale of the assets because this is def. not a business
6. The lack of money management here is apparent so this also lets me know that there's not enough margins to cover expenses
7. If you are buying a business, you want 15-20% margins minimum to make sure the business can thrive AND you can live off the abundance
8. Their payroll processing fees and payroll taxes are the same so they can lean this out by doing payroll differently (its also under COGS and expenses)
9. Which leads me to believe which could be accurate or not that the person doing the books has no idea what the hell they are doing
10 Finally this shows absolutely no assets on the balance sheet which is lack of structure, systems, accounting, management, cashflow and you're buying air.
Ready to Buy or Sell? Reach out at 763.482.2681 or Email MK@BlueCollarBusinessAdvisors.com
