Key Questions Every Buyer Should Answer Before Purchasing a Business
Is the Business Financially Healthy?
RunSmart analyzes the business’s profitability, liquidity, solvency, efficiency, and capitalization across 13+ KPIs to help you understand its overall financial health.
Are Its Profits and Cash Flow Sustainable?
RunSmart evaluates historical performance and automatically generates forward-looking projections to help you understand how revenue, expenses, profitability, and cash flow are forecasted to change over time.
What Financial Risks Should I Investigate?
RunSmart automatically identifies concerning financial trends and potential risks in a business's financial data that may warrant closer investigation before you move forward with the acquisition.
How Could the Business Perform After I Buy It?
RunSmart allows you to model what-if changes in revenue, expenses, staffing, and other assumptions over time so you can explore how the business could perform under your ownership.
A Business Can Look Profitable and Still Carry Financial Risks
Financial statements can show what happened in the past. Buyers also need to understand what those numbers reveal about the true financial health and potential future performance of the business.
Why Relying on Seller-Provided Financials Is Risky
Many buyers evaluate an acquisition using:
Those documents are important, but they may not clearly reveal whether profitability is improving or declining, whether the business has sufficient liquidity, or whether its current performance is sustainable. Without deeper financial analysis, buyers may overlook risks that only become apparent after the acquisition.
Why Traditional Financial Review Falls Short
Evaluating a business before you buy it can be both time-consuming and expensive. Many buyers either spend thousands of dollars hiring financial professionals or attempt to analyze historical financial statements on their own, making it difficult to confidently determine whether a business is financially healthy and worth pursuing.
Traditional financial reviews often require buyers to:
How RunSmart Helps
RunSmart securely connects to the seller's QuickBooks Online account to automatically analyze historical financial data and transform it into financial health insights, risk analysis, KPIs, and forward-looking financial projections.
It helps you:
This gives you a clearer financial picture to support your due diligence and determine which areas deserve further investigation.
Before You Make an Offer
Before you:
Make sure you understand the financial health of the business and how it could perform after the acquisition. Once negotiations begin, decisions can move quickly. RunSmart helps you analyze the financial data early so you can approach the opportunity with greater clarity and confidence.
