2020 is nearly over... finally! Take the rest of this year to be ready for a successful business exit next year! View our Pre-Sale Checklist for Selling Your Business
The fourth quarter is always a perfect time to plan for next 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. Let me share a common pre-sale checklist for selling your business:
- Tax Documents
- Financial and Banking Documents
- Licenses, Inspections, and Permits
- Property/Lease Documents
- 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
- Inventory counts/audits
- Auto/Truck leases, loans or titles
- Customer list and percentages of sales
- Vendor list
- Franchise agreements
- 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.
Why a Pre-sale checklist help you before the sale...
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, consulting 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.
If you are looking to start off 2021 with a business sale, do not hesitate for another second. The sooner you begin to prepare for the sale, the better. Contact your local Transworld Business Advisors today.