Whatever the reason you have for selling your business, it’s important to remember that prospective buyers are looking for clear facts that will convince them that your business will be a profitable investment for them. Even though initially they may have been attracted to your business for other reasons, their primary interest will be the bottom line. This means that you will need to provide them with comprehensive, organized documentation that demonstrates the historical performance of your business and backs up your asking price.
Documents Needed to Sell a Business
When it comes to selling your business It’s important to prepare and get organized well in advance of your listing. The following are a list of some of the documents you’ll want to have readily available.
- Profit & loss statements for the current and past 3 years
- Current balance sheet
- Cash flow statement
- Business tax returns for the past 3 years
- Copy of the current lease
- Insurance policies
- Any additional documentation to substantiate the financial representations
- Professional certificates
- Supplier and distributor contracts
- Leases of equipment and service agreements
- Employment agreements
- Customer/Client list
Additional Primary Documents Needed to Sell a Business
Collecting and organizing the right documents will make your business more appealing to potential buyers. Being able to illustrate a profitable history through solid documentation will be the clearest way to illustrate the financial value of your business. Being prepared will not only reflect well on you and your business, it will ward off any unnecessary stress.
Organized and comprehensive record keeping, including strong financials, are a critical part of the sales process. By having all of your documents in order ahead of time you’re more likely to impress prospective buyers with a well-managed business.
Consult with a Business Broker in Ocean County, NJ
When making the decision to sell your business, it is always recommended to hire a business broker. Our business brokers at Midway Business Brokerage located in Ocean County NJ can help you understand what buyers are looking for. They can also help you determine a fair asking price for your business along with ways in which you can make your business more attractive and easier to sell.
Contact us today to learn how we can help you sell your business.
