Why does a prospective buyer need accounting?

A prospective buyer needs accounting to assess the financial health and performance of a business they are considering purchasing. Accurate financial statements provide insights into revenue, expenses, profitability, and cash flow, helping the buyer make informed decisions. Additionally, understanding the financial history can reveal potential risks and opportunities, ensuring the buyer can negotiate effectively and plan for future growth. Overall, accounting serves as a crucial tool for due diligence in the acquisition process.