Selling Your Business: Major Documents to Have On-Hand - dummies

Selling Your Business: Major Documents to Have On-Hand

By Barbara Findlay Schenck, John Davies

Part of Selling Your Business For Dummies Cheat Sheet

Sooner or later in the business sale process you’ll need the following materials. Use this checklist to assemble everything as soon as possible to smooth the road ahead.

  • Federal tax returns for the past three years (corporate or Schedule C)

  • Income statements for YTD and the past three years

  • Balance sheets for the past three years

  • Statement of seller’s discretionary earnings for most recently completed year

  • Financial ratios and trends

  • Accounts receivable aging list

  • Accounts payable list

  • Inventory list including value

  • Current building lease

  • Franchise agreement, if applicable

  • Fixtures, furnishings, and equipment list including fair market values

  • Asset depreciation schedule from most recent tax return

  • Current copies of equipment and facility maintenance agreements

  • Current employee, customer, vendor, and distributor contracts or agreements

  • Current business licenses, certifications, and registrations

  • Copies of patents and trademark registrations, if any

  • Copies of outstanding loan agreements

  • List of existing liens

  • Product or service price list

  • Employee records showing staff, hire dates, salaries, pension records, employee benefit plan outline

  • Organization chart

  • Business formation documents

  • Current client list

  • Current list of major suppliers and distributors

  • Business plan

  • Marketing plan

  • Employment policy manual

  • Business procedures manual

  • Photos of business building, work areas, and equipment