If you are like most independent web hosting companies audited financials just drains $10k or so out of your wallet, and this is an annual drain. More often then not there is no reason to throw away the money. The question is when to consider this investment.Getting directly to the point, if your company grosses $4 million/yr and you can see a scenario there you could entertain selling the company anytime in the foreseeable future, say 1-3 years, consider audited financials. From our experience this is the general breaking point for consideration, in most cases I believe you will make more money.Many of the best transactions I have been involved in are where smaller firms had audited financials. For some reason there is always a public company that gets interested. Public companies almost always require audited financials (SEC regulations), public companies usually have more cash and the valuations are almost always higher. Even if the sale is not to a public company it says you are serious about your business and the due-diligence and closing goes faster. If this is a route you want to pursue, Spring/Summer, is a great time. You are not too far into the calendar year and your accounting firm is not busy. (Side note: make sure you are at the right accounting firm.)========== MORE ABOUT TOM ==========New Commerce CommunicationsE-Mail Tom Direct
About Tom Millitzer
I am an M&A guy. I sell Hosting Companies. I want you to fulfill your dreams. If you are building your company or exiting for success...I want help you grow rich.
I started NCC International in 1994, we represented our first hosting company in 1997. NCC has completed over 400 assignments. If you are considering buying or selling you need to know me. I do not bite.
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