If you’re preparing to sell your business, getting your documents organised early can make the process considerably easier.
You won’t need to provide everything to a buyer on day one. Information is normally shared in stages, with more detailed and sensitive documents provided once a buyer is serious and appropriate confidentiality arrangements are in place.
Here’s a practical checklist of the information you’re likely to need.
Financial
- Last three years of annual accounts
- Current management accounts
- Monthly revenue and profit breakdown
- Current year budget and forecasts
- Details of debt and financing
- Working capital information
- Details of any exceptional or one-off costs
Customers and suppliers
- List of key customers
- Revenue by customer
- Major customer contracts
- Key supplier agreements
- Details of recurring or contracted revenue
- Any significant upcoming contract renewals
Employees
- Employee list, roles and salaries
- Employment contracts
- Management structure
- Bonus or commission arrangements
- Pension arrangements
- Details of key employees
Company and legal
- Company incorporation documents
- Shareholder information
- Shareholder agreements
- Material commercial contracts
- Details of any disputes or legal claims
- Insurance policies
- Relevant licences or regulatory approvals
Property and assets
- Property leases or ownership documents
- Asset register
- Details of vehicles, equipment or machinery
- Hire purchase or leasing agreements
Intellectual property and technology
Where relevant:
- Trademarks and registered intellectual property
- Domain ownership
- Software licences
- Technology agreements
- Details of proprietary systems or software
Tax
- Corporation tax records
- VAT records
- PAYE information
- Details of any outstanding tax matters or enquiries
Your accountant, lawyer or transaction adviser may request additional information depending on the business and how the sale is structured.
You don’t need to share everything immediately
Preparing documents and disclosing them are two different things.
A potential buyer does not need access to your complete customer list, employee information or commercially sensitive contracts simply because they have expressed an interest.
Information should be shared progressively as the buyer becomes more serious.
The important thing is to have it ready.
A well-organised seller can answer questions quickly, keep the transaction moving and reduce the risk of unexpected issues appearing during due diligence.
Preparing to sell?
The Brokerage allows you to present your business to potential buyers while controlling the information you choose to disclose.