It’s tough to write anything without mentioning the horrific fires in the Los Angeles area. It shows how we can be blindsided at any time. For most things, personal and business, we can be prepared. But not for fires like this, massive earthquakes, hurricanes, etc.
Regarding a business connection, it shows how we must be ready for anything at any time. As a guest on many podcasts lately and having numerous guests on our podcast I can say the number one value driver mentioned having good financial systems and therefore having accurate statements.
A few times a year I’ll review financial statements and must ask, why are there balance sheet items on the income statement? Never is there a good answer.
Recently messy financial statements killed a buy-sell deal. In mid-2024 all looked good (income wise) although accounts receivable had skyrocketed. By November AR was done and so was income and at year-end it looked like a different company. The explanation that it was all because the owner bought new (personal) vehicles didn’t cut it. Something funky was going on (probably just sloppiness) and not worth the risk.
Lots of value drivers and financial systems and statements are on every expert’s list.
“My choice early in life was either to be a piano player in a whorehouse or a politician. And to tell the truth, there’s hardly any difference.” Harry S. Truman