Hello all,
I'm looking at an opportunity that is run by a family and is very profitable with solid growth opportunity. But they do not have a digital accounting system and conduct business via cash and POS transactions.
They said the business doesn't have tax returns (the business is 3 years old). They say all the transactions are in pink and yellow slip ledger style books.
My question is, how do I verify cashflow and revenue without tax returns? And will accountants be able/willing to assist with due diligence on something like this?
Thanks!
Pre due diligence sanity check
by a searcher from University of Maryland University College
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This is what my gut was telling me too, I highly doubt this deal will go through without tax returns or any way to validate earnings. Thanks for the confirmation and guidance!