Preparing Your Business to Sell

In order to prepare a business for sale, a seller should gather all the information that a potential buyer will ask for and rely on when making a buying decision. This would include a minimum of three years tax returns and profit and loss statements. A buyer may be impressed with the company's ability to minimize its tax impact, but is truly interested in examining the company's profitability. A seller should seriously consider recasting his financial information to reflect the actual operating performance of the business.

Be prepared to answer questions regarding the financial history of the business, including the good periods and the not so good.

Have available copies of the lease, or if there is accompanying property in the transaction, a copy of your deed.

Copies of floor plans and photos of interior and exterior views of the business are great visuals to show a buyer.

Get rid of any obsolete or unsalable inventory or equipment.