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Pro Forma Financial Statements Definition

pro forma financial statements – n : financial statements intended to represent the future financial performance of a company; often prepared to represent the predicted financial performance of company after a certain hypothetical or expected future event occurs. For example, if a company is planning to acquire another firm or to raise new capital, it will prepare pro forma financial statements to represent what the combined entity will look like in terms of anticipated financial structure and future performance.

Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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