What if my accounts are messy?
It widens the range rather than preventing a valuation. But messy accounts cost real money at sale — they lengthen due diligence and shift the burden of proof onto you.
It widens the range; it does not prevent a valuation. Personal costs run through the business, inconsistent categorisation and management figures that do not reconcile to the statutory accounts are normal in owner-managed companies, and every experienced buyer expects them.
What it costs
| Symptom | Consequence at sale |
|---|---|
| Management figures do not reconcile | Every claim must be independently verified |
| Personal costs mixed in | Add-backs are challenged, including valid ones |
| Inconsistent categorisation year to year | No usable trend, so the lowest year anchors |
| No evidence behind add-backs | They are removed rather than argued |
The pattern is consistent: messy accounts do not lower the number directly. They shift the burden of proof onto you, and anything you cannot prove is assumed against you.
What to fix, and in what order
Reconciliation first — management figures to statutory accounts, for all three years. Then separate personal costs out entirely and stop adding new ones. Then normalise consistently across the three years rather than only the most recent.
Preparing your business for sale covers the sequence; common valuation mistakes covers what happens when it is skipped.