What Should I Consider Before Buying an Existing LLC?
Gretchen Roberts acquired an accounting firm in 2023. “I was fortunate that the books were in very good order and the financials were clear and straightforward,” she says.
Now she’s CEO of Red Bike Advisors, which helps other business owners acquire businesses, providing a range of services from financial due diligence and entity structure to cash flow modeling and post-close accounting and tax support.
In her firm’s work with those acquiring businesses, she says “clean, straightforward financials are the exception rather than the rule.” Instead, she says, “Most financial reviews bring up additional issues, whether trying to determine if the information is accurate, or agreeing on how to classify certain expenses such as owner perks, or spotting financial risks that could dramatically change the buyer’s projections post-close.
