Preparing Business to Sell

Determine Your Overall Objectives

Spending time to understand all aspects of your objectives will help prioritize your goals and develop an expectation of value.


What value do you want to achieve. How do you want to manage and allocate your proceeds from the sale.


Is there a legacy that you want to maintain.  how do you want to achieve that.


How to handle communication to employees. Any key employees to protect through the sale of the business


Any Brand requirements. Brand Value.  Community impact.

Your Story

Create a selling memorandum that provides the history of your business, its origin, growth and future outlook.


Understand your level of motivation to sell.

Financial Reporting

It is important to provide financial information with the highest level of confidence from audited to management prepared.


Provide 3 – 5 years historical financial statements, year-to-date profit and loss, and balance sheet

Tax Return

3 – 5 years tax returns

Aging A/R

Aging accounts receivable


List of inventory and value


Furniture, Fixture and Equipment list and value. Book Value vs Market Value

Discretionary Expenses

Detailed list of expenses that are for the Benefit of the owner.

Transition Plan

A business transition plan is one of the most important factors, outside of financial performance for a Buyer.

Phase Out of day-to-day Business

The ideal scenario when putting your business on the market, is when you no longer have your hands in any part of the day to day operations.

Consulting Agreement

Will you agree to stay on for a specific time period.  For how long and for what price.


Will your key managers stay in the business or will any need to be replaced. What is the cost associated.   Keeping managers in place is most often more desirable to a Buyer.

Family Dynamics

Any relatives in the business.  Does this impact the structure of a purchase agreement.