So, after countless hours of hard work and dedication, meetings with sellers and your acquisition team, you’ve finally successfully completed the purchase of an existing business. As a passionate entrepreneur, you knew ahead of time what you were getting yourself into. New goals, relationships, and experiences are all a part of being the owner of a newly purchased business.

But what about your financial concerns with your newly purchased business? The business experts at Transworld Business Advisors of Minnesota want to help ease your mind surrounding financial concerns. The following are financial concerns that may arise surrounding your business acquisition.

What is Debt Disclosure?

Debt disclosure is the release of all relevant financial information surrounding a company’s debt. This could include outstanding bills, lost inventory, or money owed to a leasing company or bank. If you bought the company in a stock deal, these debts were included in your purchase of the company. The disclosure of existing debt will be helpful to you, as you can see where exactly you owe money, when it is due, and develop methods of revenue generation to help pay off debts faster.

Other Financial Concerns

Your financial professional will provide you with many other financial statements upon acquisition of the company, with notes (discussions) of the financial statements to accompany them. These notes are known as explanatory notes and will help you further understand the information presented on financial statements. Some common explanatory notes include:

Notes About Valuing Inventories: These notes will explain how a company states inventory, and what sort of method is used to determine the cost of the goods.

Notes that Explain Intangibles: These notes explain the intangible assets of a company, which are assets that are not physical, but do exist. Patents and trademarks are both intangible assets and can be of great value to an existing company and its brand.

Notes that Advise Readers on Significant Accounting Policies: These notes contain information on significant accounting decisions made by a company. These notes help readers to better understand a business’s financial statement while allowing them access to exactly what decisions are being made within the financial area of a business.