A CHECKLIST FOR PREPARING YOUR BUSINESS FOR SALE

If you know that you are ready to sell your business, start by compiling information for a potential buyer. You will want to pull together the following things into a comprehensive set of documents.

The process of assembling a comprehensive set of documents for your business sale appears to most of us a daunting task however it is your information that assists the many stakeholders in determining among other things the potential value of your business and allows your sell-side advisors to create a Confidential Information Memorandum or CIM along with Teaser that presents your business in the most positive light to potential Investors and Lenders who will be willing to facilitate the sale by you and purchase by another party of your business.

Your initial checklist of business for sale documents should cover:

1. Company; History, legal structure, business model, vision, and strategy.

2. Business; Segments, products, services, customer, references, and networks.

3. Operations; Suppliers, procurement, production, quality management, research, development, engineering, logistics, systems, marketing, and sales.

4. Resources; Organization, employees, and infrastructure.

5. Industry; Market, industry structure, competitors, competitive position, and strategic position.

6. Financials; Profits, loses, balance sheet, and cash flow for the past 3 to 5 years.

7. Outlook; For the above 6 items for the next 3 to 5 years.

There will be an even more comprehensive checklist (available for free) come due diligence phase of your transaction that is very exhaustive in nature for your sector, industry, or business model, it includes items beyond the financial standing, assets, and liabilities, and will help interested stakeholders to thoroughly understand the intellectual property, business, market position, clients, strategies, promotion methods, markets served of your company.

Request to download the comprehensive checklist here.

The Shaughnessy Group Aiding owners, entrepreneurs, and executives; selling your business, buying a business and or financing business growth. With our collective experience, access to industry data and resources we can confidentially examine a company to provide a realistic value range. Request your free report.

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