How to sell your business – part 4

So you want to sell your business?

Update your company’s financial statements and understand the nature of you firm’s revenues and expenses.

  • Buyers will typically require 2 to 3 years of financial statements (profit-and-loss statements, balance sheets and/or tax returns) for their evaluation.
  • Make sure you have supporting documentation for nonoperational expenses (fringe benefits such as your personal health insurance).
  • Prepare a simple list of the business’s important furniture, fixtures and equipment.
  • Document your inventory. If it is stale or obsolete, put it on sale or donate it. Your inventory should be lean and moving.
  • Clean-up the accounts payable and any pending legal, employee or environmental issues.

Look for tip #5 next week.

Questions? Contact us, we specialize in business valuations plus we have over 40 years’ experience connecting buyers and sellers. Call us today! 612-467-9673

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