When selling your business there are several stages that need to be completed in order to achieve a successful outcome. Some typical steps are cutting costs, reducing debts and reducing excess stock to get your finances into good order.

For all the above steps business brokers requires specific information to prepare your business for sale. The information required by the broker depends upon the industry in which your business operates. However there is some information which will be necessary regardless of the industry.

Three to five years historical financial statements/tax returns

No matter what, the buyer always pays you for what the business is set to accomplish, but they will always pay attention to your historical financial statements to reduce the risk of your anticipated earnings stream.

List of assets included and excluded in the sale

The broker needs to show to a buyer what they are getting in return for their investments. Having a prepared list of both tangible and intangible assets included and excluded from the transaction not only helps clearly demonstrate to a buyer of what they will receive but also helps to eliminate any inconsistency while exit.

Prior appraisal and valuation reports

Although an existing assessment or evaluation could be one of the services provided by your broker/intermediary, offering recently finished evaluation reports will certainly help your representatives and also customers comprehend exactly how your business has changed and also developed over time.

Business programmes and projections

Although a buyer will view the historical financial statements for an understanding of threat, and thus cost will certainly be identified based upon exactly what the business is established to achieve going forward as of the date of sale. No one has a far better understanding of this compared to you, the seller. The best means to illustrate your future desires is to prepare a business strategy that consists of financial projections.

Copies and descriptions of patents, trademarks, trade names, existing research and development and other intellectual property

Although most of this information will not be totally revealed up until the due persistence stage, having this information prepared in advance will certainly allow for a much more prompt procedure as well as help to attract a unique team of purchasers.

Stockholder agreements

Much like the schedule of indebtedness as well as lease responsibilities, shareholder arrangements are crucial to a purchaser considering an ownership stake in the existing firm. Nevertheless, also a customer acquiring the properties will need to know that no outside companies have a case to these possessions.

Not every information mentioned above is required to finalise your deal. However, the more information you provide to your broker about your business, the better they can do in marketing your business.

Hard work always pays off! So the result will be more buyers brought to your table by the broker, all competing for your business.