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Tips
for selling your business
Selling
your business is not the easiest thing to do when you don't
have records. Many business owners try to sell their businesses
without proper financial statements. I get it daily. Most
feel that the buyer gets a good profitable business and
should just spend a week or two in the business to realize
what a bargain it is. My advice to you for selling your
business - get your books in order.
The
following records are required by financial institutions
for lending money to the prospective buyer of a business:
-
Audited financial statements ( up to three years)
-
If
it is a sole propriety then at least full financial records
-
Tax
returns of the business
-
Bank
statements of the owner or business for at least the past
6 months
-
Business
plan and projections for the next year to three years
-
Copy
of the latest lease agreement
Even
if you think you just want a cash buyer, you still need
to have proof of your income and business history. Apart
from the above documents you also need to get the following
in order for selling your business:
-
List
of creditors
-
List
of debtors
-
List
of clients
-
List
of suppliers
-
Inventory
or stock list
-
List
of all machinery and equipment with their purchase receipts
where possible and their full descriptions
-
List
of fixtures and fittings
-
List
of repairs and enhancements to the property
-
Contact
details of your bookkeeper and bank account manager
-
List
of your employees, their positions, salaries and benefits
-
Income
and expenditure reports
-
List
of items that are excluded from a sale
-
List
of immediate competitors
-
Description
of current marketing strategies.
Plan
the process of selling your business. If you don't
have the above documents ready, you should start today.
The purchaser cannot make an informed decision and you cannot
provide an appraisal of the value of your business without
the above records. It is hard work, but once you have all
of the above in place, you are ready to for selling your
business at a good market related price in no time.
Author:
Isebell Gauché
Copyright
2008©
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