Seller Item Checklist

Sale readiness is critical to running a successful marketing process. A good starting point in assessing how ready your company is for a transaction is determining whether you can deliver some basic materials that your advisor will need to market the deal, and that buyers will ultimately need to evaluate it.

Situations vary. But the list below provides a basic outline of the information we request as we begin constructing your story and start to gather the materials needed to support it.

• Business history
• Owner and management bios
• Three years of monthly financial statements (income statements, balance sheets, and statements of cash flows), including current year-to-date
• Three years of tax returns
• Lease agreements, if applicable
• Bank and credit card statements
• Inventory aging
• Fixed asset listing

Additional information is generally required to gain a deeper understanding of the company and ensure it is positioned properly. The degree to which this information is provided to suitors, varies depending on information sensitivity and deal phase. But such information often includes the following:

• Sales breakdowns by segment, region and/or other meaningful category
• Sales by customer
• Staff bios and compensation details

Once you enter an LOI, the buyer will make numerous requests as part of their due diligence process, including accounts receivable and accounts payable aging analyses, licenses, and contracts. You can learn more about the buyer due diligence phase here. But focusing initially on the items listed above will help you assess whether you are ready to begin offering your business for sale, and start you down the path of gathering the materials we need to run your deal process.