Customer Acquisition · Financial analysis

Sharing financials with potential client

Ross Coulman CEO

February 18th, 2021

Participating in a bid for and oil and gas major, have shared profit statement, statement from our auditors, bank etc - but client is insisting on an income statement - my frustration is we have demonstrated we are low risk, £900k cash reserves, £600k profit last year - we do not see what value our revenue OR expenses have on the customers financial scoring.

Ali Rizvi Entrepreneur. Looking for a technical co-founder.

February 18th, 2021

As a CFO, I agree that seeing a detailed P&L is not overly useful. The reason a potential customer may want to see your financials is to understand your financial stability and whether you will be around for some period of time. Seeing a trended P&L (last 8 quarters or last 2 years) can give the reader some view into the company's trajectory. That's my 2 cents.

Marvin Turner Executive | Advisor | Professor | Governance Leader

February 22nd, 2021

Ali is correct. I'm a former CFO and CEO. There are certain ratios that can be calculated with a financial statement, including Altman Z Score and liquidity rations that may be useful for due diligence. That said, if uncomfortable, do not share, but if it is a requirement and you want the business, you probably cannot overlook it. You can follow up with a discussion with the client rep if you wish.

Abhijeet Khinchi Ex-Marketing Head Rentomojo, Personally worked with Kumar Mangalam Birla

February 18th, 2021

Maybe they wish to see your income in the line of business you are bidding for. a P&L statement might show consolidated profits and the client may want to know what your revenue is in the specific line of business for which you are bidding. do you have multiple lines of business? or multiple products and services?

Jason Merchant CEO and Chief Scientist

Last updated on February 18th, 2021