What You'll Learn In Today's Episode:

• Advisors often overlook their own financials.
• Understanding EBITDA is essential for valuation.
• Personal balance sheets can reveal red flags.
• Buyers look for consistency in financial statements.
• Transparency is key in financial dealings.
• Clean bookkeeping can lead to significant tax savings.

In this episode of the Perfect RA Podcast, host Matt Jarvis speaks with his brother, Steven Jarvis, CPA, about the intricacies of auditing in mergers and acquisitions (M&A) deals. They discuss the importance of accurate financial reporting, the nuances of EBITDA, and the potential red flags that can arise during the due diligence process. Steven emphasizes the need for financial advisors to maintain clean books and be transparent about their financials, as this can significantly impact the valuation of their practice during a sale. The conversation also touches on the buyer’s perspective, the consequences of misleading information, and best practices for running a business effectively.

Resources In Today's Episode: