Business Sale Preparation Guide

The following information is needed and will greatly aid in the preparation and accurate assessment of your existing business.

  • Corporation - Three years corporate tax returns and W-2's for owner’s payroll.
  • Proprietorship - Three years federal tax returns.
  • A current financial statement with Profit & Loss and Balance Sheet.
  • Financial statements for the past three years with Profit & Loss and Balance Sheets.
  • Copies of all lease obligations (premises and equipment)
  • A list of all equipment used for ongoing business operation and included in the sale of the business.
Note: A value needs to be placed on the total of all the equipment (non-itemized.) This value should reflect the replacement cost of the equipment at current fair market value considering age, condition and obsolesce factors.
  • A list of all trade fixtures included in the sale and a total value based on the replacement cost.
  • A list of all leasehold improvements at fair value, included in the sale of the business.
    Note: A leasehold improvement is an improvement that has been performed on the premises after the lease was executed and the tenant was in possession. If the unit was built on a turnkey basis or if you are the owner of the real estate, there are no leasehold improvements.
  • A copy of the franchise agreement if applicable.
  • A list and description of all applicable customer and vendor contracts.
  • An estimate of the acquisition cost of current marketable inventory that will be on hand for the new owner and adequate for the operation of the business.
    Note: The inventory can be included in the sales price or priced separately; either way, an approximate estimate of what is needed and will be on hand at the time of the sale is important to ensure a smooth transfer.
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Realty Express - Business Brokers
Small enough to know you
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Realty Express - Business Brokers
Serving North-East and South-Central Alabama
256-442-1500 Office, or 256-328-2525 Cell.  256-442-1599 Fax  
334-652-9046, 334-356-3163 or 334-782-2252
Email: contact@re-bb.com