What documents are required to list my business for sale?

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What documents are required to list my business for sale?

What documents are required to list my business for sale?

Kenneth Answered question November 30, 2024
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To list your business for sale, you’ll need a variety of documents that potential buyers will review to assess the value, health, and potential of the business. Here’s a list of common documents you should have ready:

  1. Business Financials:
    • Income Statements (Profit & Loss Statements) for the last 3-5 years.
    • Balance Sheets for the last 3-5 years.
    • Tax Returns for the last 3-5 years.
    • Cash Flow Statements (if available).
    • Debt Information (current liabilities and any outstanding loans).
  2. Valuation Documents:
    • Business Valuation Report (if done by a professional).
    • Appraisal Reports for major assets, like real estate or equipment.
  3. Legal Documents:
    • Business Formation Documents (e.g., Articles of Incorporation, LLC Operating Agreement).
    • Ownership and Shareholder Agreements (if applicable).
    • Intellectual Property Documents (e.g., patents, trademarks, copyrights, domain names).
    • Contracts and Leases (with customers, suppliers, and landlords).
    • Non-Disclosure Agreements (if used for confidential discussions with potential buyers).
  4. Operational Documents:
    • Employee Agreements (if any, including contracts or non-compete clauses).
    • Business Plan (if applicable).
    • Inventory List (if selling physical products).
    • Supplier and Customer Agreements (long-term or significant contracts).
  5. Assets and Liabilities List:
    • List of Tangible Assets (e.g., property, equipment, vehicles).
    • Liabilities (including any legal issues or outstanding debt).
  6. Legal Disclosures:
    • Pending or Potential Lawsuits (if any).
    • Government or Industry Regulations affecting the business.
    • Environmental Concerns (if applicable).
  7. Other Relevant Documents:
    • Marketing Materials (e.g., brochures, website, advertising strategies).
    • Customer Data (anonymized customer lists or sales data).
    • Franchise or Licensing Agreements (if applicable)
john Answered question November 30, 2024
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