A Chicago strategy consultant generating $380K had never separated business and personal finances. When a PE firm requested 3 years of clean financials, we delivered in 41 days.
01The Situation
The consultant had run her strategy practice solo for seven years, growing to $380K with Fortune 500 clients. But financial management had been minimal: one bank account for everything, no separation between personal spending and business costs.
When a PE firm indicated acquisition interest and asked for three years of clean financials, the problem became urgent. Her existing records showed ~40% net margin, but $131,200 in personal expenses over three years were in the business books.
02What We Did
Every transaction across three years was categorized as legitimate business expense, personal expense, or ambiguous. Ambiguous items were resolved using the IRS ordinary-and-necessary standard with documented rationale. Personal items removed and equity account adjusted accordingly.
The true net margin, 71.8% average, was better than the mixed-records version suggested. Legitimate business expenses were well-controlled. The PE firm received the package on day 41.
03Client Impact
The restated financials showed a business performing better than she realized: 71.8% net margin over three years is exceptional for a solo practice. The PE acquisition process is ongoing.
Breakdown
| Year | Gross Revenue | Business Expenses | Personal Removed | Net Income | Margin |
|---|---|---|---|---|---|
| FY 2022 | $298,000 | $84,200 | $38,400 | $213,800 | 71.7% |
| FY 2023 | $342,000 | $96,400 | $44,200 | $245,600 | 71.8% |
| FY 2024 | $380,000 | $106,800 | $48,600 | $273,200 | 71.9% |
| 3-YR TOTAL | $1,020,000 | $287,400 | $131,200 | $732,600 | 71.8% avg |
What changed
3-Year Financials Restated
Complete P&L, balance sheet, and cash flow for FY 2022–2024. All personal items removed and documented.
$131,200 in Personal Expenses Removed
Three years of mixed spending properly separated. Each item documented for investor due diligence.
True Net Margin: 71.8%
Higher than mixed-records version suggested. Acquisition story improved.
Delivered 5 Days Early
Investor-ready package delivered day 41 of 42-day window. Acquisition advanced to next stage.
The restated financials showed a business performing better than she realized: 71.8% net margin over three years is exceptional for a solo practice. The PE acquisition process is ongoing.
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