What Do I Need to Do Before Finding a Buyer?

When you’re preparing to sell your business, preparation is the key. You’ll need to eliminate as much
debt as you possibly can, gather all of your important financial documents for potential buyers to
analyze, and discover any potential weaknesses. This will help you maximize the overall value of your
business and speed up your sale process.

What Documents Should I Show Buyers Who Start Due Diligence?

When you have a buyer that advances to the due diligence stage, you’ll be required to open up your
books and provide them with the remaining pieces of financial information. You shouldn’t worry about
giving this up as long as you’ve made the buyer sign a non-disclosure agreement (NDA). The information
requested during due diligence will vary by buyer, industry, and the concerns of each individual
business.

Based on what I've researched, Here are the most important documents that you need to have ready for
due diligence:

Proof of Business Ownership

Business Licenses

Payroll Summaries for 1 Year

Outstanding accounts payable

Outstanding accounts receivable

Current Loan Documentation

Lease Contracts

Sales Contracts

Details of All Chargebacks or “Owner’s Salary” in Your Financials

3 Years of profit and loss statements

3 Years of cash flow statements

3 Years of balance sheets

How Long Does it Take to Close Once I Find a Buyer?

The length of time it takes to close depends on your buyer, how complicated your business is, and how
extensive your negotiations are.
.How long will it take for my business to sell?

Every business is unique, and each individual circumstance is different. For this reason, there is no way
of knowing for sure how long it will take to sell your business. For example, if you are in a ‘seller’s
market’ and your type of business is in higher demand, it maybe easier to attract a buyer. If, on the
other hand, there are multiple businesses like yours available and a limited pool of buyers, you will need
to do more to make your business stand out.

What mistakes should I avoid during the selling process?

When someone is selling a business, there is a tendency to become complacent. Do not fall into this
trap. This is the time to stay focused and work as hard as possible. The finish line is near, and you need
to keep your business strong, so the buyer will inherit a good situation. Also, try to avoid making any
major changes during this period. Do everything possible to retain your best employees, and train them
to take over more responsibility.

1. What Do I Need to Do Before Finding a Buyer?

2. What Documents Should I Show Buyers Who Start Due Diligence?

3. How Long Does it Take to Close Once I Find a Buyer?

4. How long will it take for my business to sell?

5. What mistakes should I avoid during the selling process?