When selling your internet business it is very important to provide your broker with accurate financials as inaccurate financials is the number one reason that website deals fall apart. Any buyer will perform extensive due diligence and will likely discover incorrect data and will then either want to walk away or revalue the deal. This is easily avoidable as long as you take your time retrieving the correct information.

When you sell your website, your internet business broker will request a few years of P&L statements if your business has been operating that long. Your website’s sales should be easy to provide as all you have to do is go through bank statements or merchant account statements to come up with your top line figures. Both of these statements can be found online through your bank’s website which usually maintains your last few years of statements. From there, you must go through your statements and identify your operating expenses. Normal operating expenses will include inventory, salaries, technology fees, shipping, rent, telephone and credit card fees to name a few.

If you are not entirely sure whether or not to include a particular expense it is important to discuss this with your internet business brokers as he will guide you in the right direction. Most internet business brokers have been through this process so many times that it is second nature to them. After computing your actual expenses your owners’ discretionary cash flow can be easily measured. As it will be this bottom line number that most buyers will mainly be focused on, it is thus imperative for it to be correct. The last thing you want to happen is a deal falling apart and a strong buyer pulling out due to a mistake that can be circumvented by simply being accurate.