Business Sale Preparation Checklist

Complete checklist to prepare your business for a successful and profitable sale

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Financial Documentation & Records

Essential Financial Documents

Financial Statements (3-5 years)

Audited or reviewed financial statements
Monthly financial statements (current year)
Cash flow statements and projections
Balance sheets with asset details
Accounts receivable aging reports

Tax & Accounting Records

Business tax returns (3-5 years)
Personal tax returns if pass-through entity
Sales tax records and compliance
Payroll tax records and compliance
Chart of accounts and accounting policies

Legal Documentation & Compliance

Corporate & Legal Documents

Corporate Structure

Articles of incorporation
Bylaws and operating agreements
Shareholder agreements
Corporate minutes and resolutions
Stock certificates and ledger

Key Contracts

Major customer contracts
Supplier and vendor agreements
Employment and consulting agreements
Lease agreements (property & equipment)
Licensing and franchise agreements

Intellectual Property

Patents, trademarks, copyrights
Trade secrets and know-how
Software licenses and agreements
Non-disclosure agreements
Non-compete agreements

Operational Systems & Documentation

Business Operations

Operations manual and procedures
Organizational chart and job descriptions
Quality control and compliance procedures
Supplier and vendor information
Customer database and history
Marketing and sales materials

Human Resources

Employee handbook and policies
Personnel files and contracts
Benefit plan documents
Safety and training records
Union agreements (if applicable)
Key person insurance policies

Value Enhancement Improvements

Financial Optimization

•Normalize owner expenses
•Optimize tax structure
•Clean up balance sheet
•Improve gross margins
•Reduce unnecessary expenses

Operational Excellence

•Document all processes
•Reduce owner dependency
•Strengthen management team
•Improve operational efficiency
•Upgrade technology systems

Market Position

•Diversify customer base
•Develop recurring revenue
•Strengthen competitive moat
•Improve brand recognition
•Create growth opportunities

Preparation Timeline

Recommended Preparation Phases

6-12 Months Before Sale

Strategic preparation and major improvements

• Get professional business valuation
• Identify and address major weaknesses
• Implement value enhancement initiatives
• Begin financial record cleanup

3-6 Months Before Sale

Documentation and team assembly

• Complete financial documentation
• Organize legal documents
• Assemble advisory team
• Prepare operations manual

1-3 Months Before Sale

Final preparations and marketing readiness

• Finalize all documentation
• Complete due diligence preparation
• Develop marketing materials
• Plan confidentiality protocols

Common Preparation Mistakes

Inadequate Records

• Missing financial statements
• Poor record organization
• Incomplete documentation
• No backup systems
• Unclear ownership records

Rushed Preparation

• Not allowing enough time
• Skipping value improvements
• Incomplete due diligence prep
• Last-minute legal issues
• Poor advisory team selection

Operational Oversights

• High owner dependency
• Weak management team
• Undocumented processes
• Customer concentration risks
• Neglected compliance issues

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Our experts can help you identify preparation priorities and create a customized action plan for your business sale

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