Presenting your numbers clearly

The short version

Show three to five years of results side by side, plus the current year to date.
Start from your tax returns and walk clearly to your adjusted earnings, one line at a time.
List every add-back with a short reason.
Show monthly or quarterly detail so a buyer can see seasons and trends.
Label any projection as an estimate. Buyers and lenders rely on what already happened.

The core table

Put the years side by side, so a buyer can see the trend at a glance:

Revenue
Cost of goods or direct costs
Gross profit
Operating expenses
Net profit, as shown on the tax return
Add-backs, as a total
Adjusted earnings: SDE or EBITDA. Lesson 3.3 explains which.

Walk from the tax return to adjusted earnings

This is often called a reconciliation. It starts with the profit on your tax return and adds each item back, one line at a time, until it reaches adjusted earnings.

| Line

Year 1

Year 2

Year 3

| | --- | --- | --- | --- | |

Net profit per tax return

| |

+ Owner's salary and benefits

| |

+ Interest

| |

+ Depreciation and amortization

| |

+ Personal expenses (listed separately)

| |

+ One-time costs (listed separately)

| |

= Adjusted earnings (SDE)

Each line should have a short note explaining it. Lesson 5.3 covers which add-backs hold up.

Show the detail behind the totals

Monthly or quarterly results, so seasons and trends are visible.
Revenue by customer, shown as codes rather than names. Lesson 4.3.
Revenue by type: recurring, repeat and project work. Lesson 4.4.
Gross margin by service or product line, if you have more than one.

Projections

If you include a forecast, label it clearly as an estimate and explain what it assumes. Buyers and lenders value businesses on past results. A projection can show a new owner the opportunity. It will not raise the price on its own.

Keep it consistent

Every number in the [CIM](/learn/reference#confidential-information-memorandum "The document that describes a business for sale to a buyer who has signed a non-disclosure agreement. The numbers, the history, the customers, the people and the reason for selling.") must match your data room. Round the same way everywhere. Use the same year-end throughout. A buyer who finds two versions of the same number will question all of them.