PREPARE TO SELL
Provide provable books and records for sales and profits which have been attained by the company over the years in business. The last three years of Federal tax returns, profits & loss statements, and balance sheets will be needed; as will the present year-to-date records.
Produce the list of assets, furniture, fixtures and equipment. A complete inventory that will be referenced during inspection is needed. An exclusion list is also suggested.
Have an up-to-date list of employees, their title, job description, time on the job, full time or part time, wage rates and benefits.
Know the reason for the sale, as the buyers will want to understand and be comfortable that there is not any undisclosed information that could negatively affect their investment in the future.
Prepare the terms of the covenant not to compete, the time period of the non-competition and its appropriate distance from the present company location.
Explore possible adverse situations up front with the CADEAU & COMPANY professional. Most situations such as outstanding loans, landlord demands, tax arrears, equipment leases, non-compliant zoning, health regulations, or other regulations can be overcome if known by your intermediary at CADEAU & COMPANY.
Create the best possible appearance for the prospective buyer. The business premises should be neat, clean and in good repair. Write out a narrative of the history of the company along with any notable accomplishments or charitable giving. Gather all advertising materials and information for review.
Value the business properly. A third party valuation on the company creates a document that proves the value to the buyer and shows the business to be competitively priced. We at CADEAU & COMPANY can suggest the third party business evaluation company.
Expect educated buyers to give you reasonable price and terms. Educated buyers will only consider competitively priced businesses.
Be prepared to move forward when a qualified buyer shows interest in the company.