--- title: "How a buyer analyses your figures" description: "SME buyers evaluate your company through a precise financial analysis framework. Understanding how they analyse your figures allows you to prepare your documentation and anticipate their questions. This guide decodes the indicators, ratios and signals they examine as a priority." lang: "en" author: "Jonathan Monnay" published: "2026-02-03" modified: "2026-02-03" category: "Practical Guides" alternates: de: "https://www.leez.ch/de/blog/wie-ein-kaufer-ihre-zahlen-analysiert" fr: "https://www.leez.ch/fr/blog/comment-un-acheteur-analyse-vos-chiffres" it: "https://www.leez.ch/it/blog/come-un-acquirente-analizza-i-vostri-numeri" url: "https://www.leez.ch/en/blog/how-a-buyer-analyses-your-figures" --- # How a buyer analyses your figures By Jonathan Monnay ยท Published on 03.02.2026 ## Introduction You have built your business over the years. You know every client, every project, every detail of your operations. But **a potential buyer initially only sees your figures**. Before visiting your premises or meeting your teams, they examine your financial statements. They calculate ratios, analyse trends, compare your performance. This **SME financial analysis** determines whether they will pursue or abandon the project. This stage may seem intimidating. Yet buyers follow a structured and predictable method. They seek answers to specific questions: is the company profitable? Does it generate cash? Are the figures reliable? Understanding their analytical framework changes everything. You can **prepare your documents in advance**, anticipate their questions and present your results in the best light. You gain credibility and accelerate the process. This guide decodes financial analysis from the buyer's perspective. You will discover the essential documents, key ratios such as **EBITDA**, warning signals and expected adjustments. Whether you are a seller or buyer, this information will help you [better understand buyers' priorities](https://www.leez.ch/en/blog/what-buyers-really-look-at-first). ## Summary Buyers analyse your finances according to a structured method: accounting documents, EBITDA, profitability ratios, liquidity and operational efficiency. They examine trends over 3 to 5 years, apply adjustments to reflect economic reality and identify warning signals. Preparing your figures in advance, with clear and reliable data, accelerates the process and strengthens your credibility during negotiations. ## Essential financial documents Any serious buyer will request three basic documents: balance sheets, profit and loss statements and cash flow statements. These financial statements generally cover the last three financial years. The balance sheet shows the financial position at a given moment: assets, liabilities, equity. The profit and loss statement reveals performance over a period: turnover, expenses, profit. The cash flow statement indicates the company's ability to generate cash. These documents enable an initial [rapid assessment of the buyer's priorities](https://www.leez.ch/en/blog/what-buyers-really-look-at-first). ## EBITDA: the figure that matters most EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) measures profit-generating capacity before financial and accounting elements. It is buyers' preferred KPI for assessing actual operational profitability. Example: a turnover of CHF 800,000, operating expenses of CHF 650,000 give an EBITDA of CHF 150,000. Buyers often adjust this amount: normalised director's salary, exceptional expenses, personal vehicles. Use the [Leez valuation tool](https://www.leez.ch/en/valuation) to estimate your company's value. ## Financial ratios analysed as a priority Buyers systematically calculate four to five key ratios to compare your company to market standards. These indicators quickly reveal financial health and management efficiency. Each ratio answers a specific question: is the company profitable? Can it honour its debts? Does it manage its resources efficiently? A comprehensive **SME financial analysis** always combines several ratios to obtain an overall view. ### Profitability and margins Gross margin measures the difference between turnover and cost of sales. Net margin indicates profit after all expenses. ROE (Return on Equity) shows the return on invested equity capital. A net margin of 8-12% is generally considered healthy for a Swiss SME, but this varies greatly by sector. A retail business will show lower margins than a specialised services company. ### Liquidity and solvency The liquidity ratio checks whether the company can pay its short-term debts. The debt ratio measures the weight of debts relative to equity. Working capital indicates the ability to finance current operations. A liquidity ratio below 1 or debt above 70% constitute warning signals. Buyers seek a balanced financial structure that limits risks. ### Operational efficiency Stock turnover shows how many times inventory is renewed per year. Customer and supplier payment terms reveal working capital requirement management. Productivity per employee measures human resource efficiency. A customer payment term of 90 days combined with a supplier term of 30 days creates cash flow tension. These operational ratios reveal the quality of day-to-day management. ## Evolution over time: the trend matters No buyer relies on a single isolated financial year. **Financial analysis** always covers 3 to 5 years to identify trends: turnover growth, profitability evolution, margin stability. A one-off decline is not necessarily a deal-breaker if it can be explained: significant investment, reorganisation, loss of a major client since compensated. Transparency is essential: document significant variations and prepare factual explanations. ## Adjustments: aligning figures with reality Buyers make adjustments to obtain normalised **EBITDA**: director's salary adjusted to market rates, non-recurring exceptional expenses, rent if the premises are personally owned, company vehicles for private use. These adjustments are legitimate and expected. Document them properly in a detailed table to facilitate analysis. Consult the [valuation methods for buyers](https://www.leez.ch/en/blog/valuing-a-target-evaluation-methods-for-buyers) to understand their perspective. ## Financial warning signals Certain indicators immediately alert buyers: persistent negative cash flow, dependence on a single client (>30% of turnover), high doubtful receivables, obsolete stock, unpaid tax or social security debts. Anticipate these questions and prepare factual answers. If your cash flow is tight, explain why and show corrective actions. Buyers ask [specific questions on these points](https://www.leez.ch/en/blog/questions-to-ask-the-seller-the-50-essential-ones) during due diligence. ## Preparing your figures before putting the business up for sale Have your accounts audited or reviewed by an independent expert. Prepare a clear financial dossier: financial statements, adjustment table, explanations of significant variations. Document anomalies before they are pointed out to you. The [Leez expert network](https://www.leez.ch/en/partners) includes fiduciary firms specialising in business transfers who can support you in this preparation. Once your figures are ready, publish your listing on Leez for CHF 490 and give your business visibility to [qualified buyers](https://www.leez.ch/en/companies-for-sale). Financial analysis of an SME is based on concrete elements: reliable documents, solid EBITDA, balanced ratios and a positive trend over several years. Buyers scrutinise profitability, liquidity and operational efficiency to assess risk and justify their offer. Adjustments allow figures to be aligned with economic reality, whilst warning signals reveal potential weaknesses. Preparing your figures in advance is not an option: it is a condition for inspiring confidence and maximising your chances of concluding a transaction at the right price. Clear accounting, up-to-date documents and a structured presentation make all the difference when facing an informed buyer. Before putting your business up for sale, [estimate its value free of charge](https://www.leez.ch/en/valuation) to start on a solid foundation. If you are looking to acquire a business, [explore the opportunities available](https://www.leez.ch/en/companies-for-sale) on Leez and apply this analytical framework to identify the most promising cases.