The One-Page P and L Checklist Buyers Love

Why a one-page P and L matters

• Shows you run a tight ship and know your numbers
• Shortens the buyer’s first review from hours to minutes
• Flags normalised earnings before deeper due diligence starts

What to include on the sheet

1 Revenue breakdown

• Total revenue by year for the last three years
• Split recurring versus one-off sales
• Top three customer segments with percentages

2 Cost of goods or direct labour

• Material or subcontractor costs only
• Gross profit margin clearly shown as a percentage

3 Operating expenses in three buckets

• Staff costs
• Premises and utilities
• Marketing and other overheads

4 Normalised EBITDA

• Add back owner salary above market rate
• Add back one-time legal or consulting fees
• Remove any personal expenses run through the company

5 Working capital snapshot

• Debtor days
• Creditor days
• Inventory turn if relevant

6 Year-on-year trends

• Revenue growth rate
• Gross margin trend
• EBITDA margin trend

7 Cash conversion ratio

Operating cash flow divided by EBITDA for each year shows earnings quality.

Layout tips buyers appreciate

• Use a single A4 page in landscape PDF format
• Columns for the last three financial years plus year-to-date
• Simple fonts and no colours beyond black and grey
• Footnotes for every add back, numbered for quick reference

Common pitfalls to avoid

Pitfall: hiding owner perks in operating expenses
Fix: list them as separate add backs so buyers do not hunt for them.

Pitfall: mixing VAT inclusive and exclusive figures
Fix: present every number net of VAT.

Pitfall: rounding inconsistently
Fix: round all figures to the nearest thousand for clean comparison.

Quick self-check before you send the sheet

• Do the totals match your filed accounts exactly?
• Are all add backs explained in one line footnotes?
• Does the EBITDA margin improve, stay flat, or drop? Be ready to explain.
• Can you provide source documents inside twenty-four hours if asked?

Next step

Draft the one-page P and L this week, run it past your accountant for accuracy, and attach it to every teaser you send to serious buyers.