What can I do to help sell business?

What can I do to help sell business?   A buyer will want up-to-date financial information about the business for sale. If you use accountants, you can work with them on making current information available. If you are using an attorney, make sure they are familiar with the business closing process and the laws of your particular state. You might also ask if their schedule will allow them to participate in the closing on very short notice. If you and the buyer want to close the sale quickly, usually within a few weeks, unless there is an alcohol or other license involved that might delay things, you don’t want to wait until the attorney can make the time to prepare the documents or attend the closing. Time is of the essence in any business sale transaction. The failure to close on schedule permits the buyer to reconsider or make changes in the original proposal.

Business Information Organizer

The following documents are recommendedequired for completing the business analysis/valuation:

In addition to completing the Business Information Organizer (BIO) the following items are required for the analysis.

  • Current year-to-date Financial Statements (accrual basis) including Profit & Loss statement, Balance Sheet, and breakout of owner add-backs (compensation, benefits and unnecessary/personal expenses) through most recent quarter.
  • Annual Financial Statements (accrual basis) including Profit & Loss statements, Balance Sheets, and breakout of owner add-backs for the past 5 years, and last fiscal year by quarter.
  • Federal tax returns for the company with all attachments and schedules for the past 5 years.
  • Business Plan or other projections or budgets for future expected performance. (Optional)
  • List of all major assets including furnishings, fixtures, vehicles and equipment owned by the For each major item will need a brief description of what it is used for, date acquired, cost, expected remaining useful life (when replacement is likely to be required). Indicate any items that are owned by the company, but will NOT be included in hypothetical sale (typically the owner’s vehicle, personal computer, etc). Include tax card and other property descriptions for any real property.
  • List of all major assets including furnishings, fixtures, vehicles and equipment leased by the For each major item will need a brief description of what it is used for, date acquired, lease payment amounts, lease termination date and any other details such as $1 buyout clauses, etc. Indicate any items that are leased by the company, but will NOT be included in a hypothetical sale (typically the owner’s vehicle, personal computer, etc.).
  • Explanation of Marketing approach, materials and/or specific brochures. (Website, etc.)
  • Full description of the faciliti Size, rent, expenses included in rent, percent utilization (capacity constraints or room for growth). Copy of Lease if applicable. If owned, include full descriptions and expenses.
  • List of all employees with simple job description, length of employment and compensation.
  • List of top 10 commercial customers with annual sales for each over each of the last 5 years.
  • List of top 10 suppliers with annual purchases for each over each of the last 5 years.
  • Breakdown revenue by major product/service group for each over each of the last 5 years.
  • Number of Residential and/or Commercial Service Agreements and average revenue per agreement.
  • List of inventory with cost and usability information. (Average Inventory Value if consumables)
  • Accounts Receivable with aging.
  • Accounts Payable with aging.

For More Information, please contact us at:

MGL Business Solutions – Cincinnati, Ohio 45248

Email:  Mike@MGLBusinesssolutions.com

Phone:  513-200-0247