Royalty statements are the evidence behind every catalog valuation. A buyer cannot pay for income they cannot verify, so the way you organize your statements has a direct effect on the offers you receive and on how fast a deal closes.
Why statements matter so much
Buyers price a catalog on its historical net income and the trend behind it. Messy, incomplete or inconsistent statements create doubt, and buyers price doubt as risk. That usually means a lower multiple, a bigger holdback, or a buyer walking away during due diligence.
What to collect
Aim for at least three full years of statements, and more if you have them. Gather every source that pays you:
- Distributor or label statements (streaming, downloads, physical).
- Performing rights organizations (such as SGAE, PRS, ASCAP, BMI, SACEM).
- Mechanical collection (publisher, administrator or society).
- Neighbouring rights (for example AGEDI/AIE, PPL, SoundExchange).
- YouTube and Content ID income.
- Sync licenses and invoices, including the license terms.
- Publisher or administrator statements if you have a deal.
Keep the original files (CSV, PDF or portal exports), not just summaries. Buyers want line-level data.
How to organize them
- One folder per income source, with statements named by period (for example
PRO_2025_Q3). - A master summary spreadsheet showing net income by source, by year and by quarter. It should reconcile to the original statements.
- A song or track list with your ownership percentage, ISRC for recordings and ISWC or work codes for compositions.
- Top earners. Show which songs drive most of the income and how their earnings have moved over time.
- Notes on one-off items. Flag unusual payments such as large sync fees, back-payments or audit settlements so the buyer can normalize them.
What buyers look for in the data
- Consistency between statements and the summary you provide.
- Trend over three years: stable, growing or declining.
- Concentration: how much of the income comes from one song, one platform or one territory.
- Timing gaps: missing quarters, late payments or unusual drops.
- Deductions: fees, costs and recoupment that reduce your net share.
Supporting documents
Statements need context. Prepare:
- Publishing, label, distribution and administration agreements.
- Split sheets and co-writer agreements.
- Producer agreements and any points owed.
- Registration confirmations with collecting societies.
- Any correspondence about disputes, claims or pending audits.
Common problems to fix before going to market
- Unregistered or mis-registered works, which leak income and raise questions about ownership.
- Missing metadata, such as incorrect writer credits or ISRCs.
- Unrecouped advances that mean your statements show income you are not actually receiving.
- Duplicate or conflicting claims on YouTube or with collecting societies.
Fixing these before a sale can increase income and remove objections during diligence.
Confidentiality
Share statements only under an NDA and, ideally, through a secure data room. Release detailed data in stages: summary figures first, line-level data only to serious, qualified buyers. See Confidentiality and NDAs in Catalog Deals.
Key takeaways
- Collect three or more years of original statements from every income source.
- Build a summary that reconciles to the originals and flags one-off income.
- Clean up registrations and metadata before going to market.
- Organized data builds buyer confidence, and confidence raises the price.
We help sellers prepare their data and present it to buyers. Submit your catalog for evaluation or book a confidential call.