Are you looking to sell your business?
Start your planning early, with these three steps:
Gather your experts!
More than likely, you need get the whole gang together to hash out the right plan for you. An accountant can help you with how to structure a tax-friendly deal and possibly help with valuation. Next, you need to have an attorney draft and/or review the necessary legal documents, as well as help you negotiate the deal.
Pay an accountant to do a business valuation.
Getting a business valuation helps to identify the business’s strengths and weaknesses. The best place to be when selling your business is to have a firm grasp on how much it is worth and why. Some accounting firms offer different packages, such as a “back of the napkin” approach that would be less expensive, but not as comprehensive. Depending on where you are in the process, you may prefer a more comprehensive approach that will give you more insight to the strengths and weaknesses of your business. With this knowledge, you can focus on improving the weak areas of your business before you begin soliciting or considering offers.
Organize your documents.
Be prepared to provide at least 3 years of your financial information to a prospective buyer. Generally, the documents you should be prepared to provide include balance sheets, income statements and statements of cash flow.
Make sure you have your bylaws or operating agreement, licenses, leases, customer and vendor contracts and any other documents that coincide with your operations. Also, make sure those documents are up-to-date and are accurate.
Additionally, make sure you have kept minutes and noted business decisions through minutes or resolutions. If there have been changes in ownership, make sure that those changes are properly documented.
The main takeaway is to start planning early so that you give yourself time to address any weakness and to present an attractive package to potential buyers.
Wick Law, LLC is a small business legal practice, representing owners, investors, and entrepreneurs in all aspects of commercial, corporate, and business law, estate planning, contracts and negotiations, business litigation, and real estate. For more information: Contact 614-572-6366, visit www.mwicklaw.com, or email us at firstname.lastname@example.org. Wick Law, LLC is located in Columbus, Ohio.
(Materials in this article have been prepared by Wick Law, LLC for general informational purposes only. This list is for educational purposes and is not to be considered exhaustive. More items could be added to this checklist based upon the type of transaction or industry standards. These materials do not, and are not intended to, constitute legal advice. The information provided is not privileged and does not create an attorney-client relationship with Wick Law, LLC or any of the firm’s lawyers. This checklist is not an offer to represent you. You should not act, or refrain from acting, based upon any information in this checklist. Wick Law, LLC maintains offices in Columbus, Ohio, and has lawyers licensed to practice in Ohio and in the United States District Court, Southern District of Ohio. The firm does not intend to practice law in any jurisdiction where the firm is not licensed.)
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