Collect Your Information

• Criteria for selling a business are not set in stone. Some buyers may want to look at your financial statements from the past three years, while others may be more interested in the strength of your customer list and your sales activity for the past three years. When gathering the information, there are some basic things that you should count on needing. Plan on using information from the previous three years. You will need financial statements; accounts payable; accounts receivable; business plan; sales activity; account list; and an estimated value of your business. Hire a firm to place a value on your business, and use that as a starting point for negotiations. Be prepared for prospective buyers to have done their own valuations of your business, and be prepared to supply any other information requested of you.
  
  

Use a Lawyer and Accountant

• Have an accountant help you collect all the financial records you will need to present to a buyer, and have a lawyer help you prepare the contracts and other legal information. Do not attempt to sell your business on your own. There are many things involved in selling a business that a lawyer and accountant are prepared to help you with. You want to be certain that when a prospective buyer requests financial information, you are able to supply exactly what he needs, and you want to be sure that all of your legal bases are covered from the beginning of the process to the end.
  
  

Tie Up Any Loose Ends

• If you have any outstanding debt, pay it prior to putting your business on the market. Pay off any tax liens, past due tax bills, and make sure you are caught up on paying your employees as well. The less outstanding debt a prospective buyer has to take on, the more money you can get for your business.
  
  If you have any business contracts or negotiations pending, complete them or cancel them depending on whether or not they will add value to your business. When you are getting ready to sell, you do not want to start the process of investing a lot of money into capital purchases such as new equipment or a new facility.