RESOURCES

Checklist

The following is a list of information you will need to have available for prospective buyers of your company. You may not have information for every item on this list, but the selling process will be easier and faster if you are well prepared.

General Information

• Reasons for selling the business.
• How long has business been for sale?
• Have there been prior attempts to sell the business which were not completed? With whom?
• What is selling price? Terms? Seller financing?

Background and History

• Legal name.
• State of incorporation and date incorporated.
• Form of business (sole proprietorship, partnership, C Corporation or S Corporation)
• Minutes of board of directors meetings, articles of incorporation and bylaws.
• Founders and history.
• Any acquisitions, mergers or divestitures?
• List of subsidiaries, divisions, and joint ventures.

Market

• Definition of market in which the business operates.
• Current market share.
• Market trends.
• Major competitors.
• Products and services.
• Sales/profitability of product lines.
• Competitive strengths and weaknesses.
• Channels of distribution (direct sales, reps etc.)

People

• Owners-percentage of ownership.
• Officers, directors, managers and key employees-position, age experience. Organization chart.
• Any special skills?
• Total number of employees.
• Union or non-union shop? Labor negotiations pending? If union, copy of current contract(s).

Facilities

• Location and plant facilities.
• Age and condition of facilities.
• Utilization/capacity rates.
• Leased or owned?
• Environmental studies (Phase I, Phase II, etc) if they've been done.

Operations

• Production process.
• Major suppliers.
• Major customers and their percentage of total sales.
• Order backlog.
• Method of inventory control.
• Research and development activities.
• Method of pricing products.
• Capital expenditures - historical and planned.

Financial

• Audited financial statements for the past three years and current monthly financials.
• Budget and cash flow information for current year.
• Financial projections for the next five years
• Unusual/non-recurring expenses/income.
• Description of internal controls.
• Capitalization and list of shareholders.
• Outstanding debt.
• Intellectual property - patents, trademarks, etc
• Insurance coverage.
• Retiree pension and medical liabilities.

Other

• Names, addresses and contacts of professional advisers including attorneys, accountants, bankers, etc.
• History and result of any lawsuits brought against the company, including pending actions.
• Contracts.