QUESTIONNAIRE
Thinking of Selling?
What Do I Need to Sell My Business?
- Financial Documentation:
- Three years’ profit and loss statements and federal tax returns.
- A current year-to-date financial statement.
- An approximate value of equipment, fixtures, and inventory (if applicable).
- Licenses and Permits:
- Create a list of all required licenses and permits for the business.
- Identify which will transfer to the new owner and which the buyer will need to apply for. Common examples include health permits, business licenses, or industry-specific certifications.
- Preparation and Presentation:
- Organize your financials neatly and accurately to show trends and cash flow.
- Include owner’s benefits in cash flow calculations to improve the bottom line.
- Work with your accountant if necessary to ensure accuracy.
- Valuation and Tax Considerations:
- Determine your business’s net cash flow
- Understand the tax implications of your sale, considering your business’s legal structure (corporation, partnership, etc.).
- Plan to maximize your net profit after taxes and avoid surprises mid-transaction.