Preparing A Business For Sale

Preparing your business for sale - what business brokers will need from you.
by Broker Service Network at www.brokerservicesnetwork.com

All reputable business brokers will fully disclose what they need from you prior to taking the listing and after the listing is in place. All good business brokers not only lend expertise to the transaction but they will coach you along the way.

Here is a general list that business brokers will need

1. Up to 3 years of financial statements - including tax returns if available
2. Value of equipment at replacement cost
3. Value of inventory at your cost (not retail)
4. Value of real property if included in the sale
5. Copy of the lease if business is on leased real property
6. Assurances that you will keep the business the same way during the listing period as it was before the listing period - including replacing inventory etc.
7. Assurances that you will provide all "reasonable" subsequent information requested by qualified buyers

FYI: If business brokers DO NOT request and/or discuss #''s 1-7 above then consider finding other business brokers.

Make sure the business brokers do all of the following.

1. Determination Of A Market Value For Listing
2. The listing
3. Buyer Marketing
4. Qualify Buyers
5. Get Qualified Buyers Under Confidentiality
6. Full Disclosure To Qualified Buyers
7. The Business Tour With The Qualified Buyer The Business Broker And You
8. The Business Financial Review To The Qualified Buyer
9. Due Diligence - Getting Updated Info For Qualified Buyer
10. The Offer
11. Offer Negotiations
12. Accepted Offer
13. Due Diligence Making Sure All Contingencies Are Met
14. Due Diligence Making Sure Financing Is In Place and Other Like Lease or Real Estate
15. The Closing And Dispersal Of Funds

FYI: Not only are Step #'s 13-14 above vital - it is also where many lazy business brokers falter and create the cancellation of the deal. If the business brokers you are talking to do not cover #'s 13-14 then find other business brokers.

BSN has certified all business brokers in our network at www.brokerservicesnetwork.com