Personal Financial Statement

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K&A; was contacted by a prospective buyer today asking for assistance in putting together his personal financial statement. This document is important for a buyer to compile not only to provide a bank in applying for a loan, but also important for demonstrating financial capability to the business seller and establishing credibility to any offer made. Similar to a company’s balance sheet, a personal financial statement lists an individual’s personal assets (investments, personal residence, etc.) and liabilities (car loans, mortgage, etc.).

Almost all business sale transactions have some component of seller financing, so it’s vital that the seller know that a buyer will have the financial wherewithal to complete the transaction and have enough left over for working capital. The seller is taking a risk in lending the funds, so it’s not unusual for them to inspect a buyer’s financial situation just like a bank would. Having the statement current and available will assist a buyer in negotiating a successful transaction.

The SBA has a specific personal financial statement required to be completed and you can also find templates at the SCORE business consulting site (

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