Be ready this year! View our Pre-Sale Checklist for Selling Your Business
Starting fresh in the first quarter is always a perfect time to plan for the coming year. As a small business owner, you might be thinking about selling your business. Whether the reason is early retirement or the desire to invest in a new endeavor, there are definite steps you can take to prepare your business for sale. Consider this pre-sale checklist for selling your business:
Financial and Banking Documents
Licenses, Inspections, and Permits
Employee list with job titles and length of service
Employee hiring, training, non-compete or anti-solicitation records if applicable
Telecommunications (Internet and Website Management)
Equipment, furniture, fixture lists with an approximate age
Equipment Lease or Warranty Documents
Auto/Truck leases, loans or titles
Customer list and percentages of sales
Price lists, menus, brochures
Other contractual agreements
The one component all of these have in common is getting documents in order. Documents are considered essential as they represent your business – from the value to the size and even the staff. A potential buyer will want to know where your profits come from, how you train your employees, and what you own or owe. Being ready to answer any and all of these questions will make your business that much more attractive to the kind of buyer you will want to negotiate with.
Before the Listing
This checklist will also help you determine where you need the most help. No business owner is expected to have it all organized and figured out right away. In fact, hiring a business broker before you begin the selling process can help you immensely. Not only will an experienced advisor have expertise in your market and industry, but they will also be able to guide you through the process of getting these documents in order and translating what it all means. In addition, they are able to tell where your strengths and weaknesses lie, getting you one step closer to making the necessary improvements to make your business highly coveted by the right potential buyers.