12 Tips before selling your business – Tip 3 of 12
is my business ready to sell?
Most businesses need to do some cleaning up of their books before they begin selling their business. Make sure your accounting records are pristine. Nothing will cause a business sale to crash more than having a buyer examine your books and find errors or mis posted items. If you don’t already have a CPA prepare annual compilations start for the last year end. High performing businesses typically plan 5 years before they want to sell so they can provide five years of solid financials. Often it may make sense to have your CPA prepare reviewed financial statements rather than compilations. Consult with your CPA or financial advisor. Though reviewed and audited financial statements are more expensive they provide the buyer a higher degree of confidence than compiled financial statements.
Go through your corporate records and make sure all of them are up to date. A buyer needs to be able to clearly see in your corporate records that you have a right to sell your business.
Make sure you don’t have any unexpected UCC filings in your county courthouse or state corporations division. Have lenders terminate any UCCs for loans that have been paid off.
Answers to these and many more questions can be found in The Exit Strategy Handbook. See Chapter 6, “Preparing for Your Last Customer: The Buyer,” page 69.
Contact me today to schedule a Complimentary Business Analysis which includes a complimentary copy of the Exit Strategy Handbook.
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