Getting Ready FOR SALE - Tip 2

Have good “Source Documents” ready.

Why is it important to obtain quality source documents from a Vendor?? 

Having quality Source Documentation is the best way for a buyer to assess the value of your business and the risks associated with buying it. Think about it… Buyers will have questions and will want to look at your business's operations, financial performance, legal and tax compliance, customer contracts, intellectual property, assets and other details.  That’s how they will make a decision on whether to make and offer or not.

What are Source Documents??

An example and a good place to start…

• Vendor Ready Profit and loss Statement for the past 3 years              

• Copy of Franchise Agreement   

• Copy of building lease   

• Copy of ALL equipment leases  

        
Having these documents ready will allow this process to run smoothly as questions arise and while the buyer is HOT!!!