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Definition

Pro forma Financial Statements

The pro forma (or projected) financial statements are the heart of the financial section of a business plan. Pro forma financial statements are projections for future periods based on forecasts and are typically completed for two to three years in the future. Pro forma financial statements are strictly planning tools and are not required by the SEC. in fact, most companies consider their pro forma statements to be confidential and reveal them to outsiders, such as lenders and investors, only on a “need-to-know basis.

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