Your Next Chapter Starts Before You Sell

How to use this checklist

•  Mark each item Ready, In progress, or Not started.

•  Write down where each document lives and who can access it.

•  Note anything you are unsure about. Those are good questions for an initial consultation.

•  Keep your notes private. Some items, such as who knows about a potential sale, are confidential by nature.

 

Important. Completing this checklist does not establish what your business is worth or guarantee a sale or a particular price. It is a preparation tool to help you see where you stand.

 

 

SECTION A

Financial Records

 

Financial records are usually the first thing a serious buyer asks to review, and they are central to any lender’s decision. Buyers want to see consistent, organized statements that match tax returns, and they want to understand what the business earns for its owner.

What buyers commonly request

☐  Business tax returns for recent years, ideally covering three years where available

☐  Profit and loss statements and balance sheets for the same periods

☐  Current year-to-date profit and loss and balance sheet

☐  A clear separation of business and personal expenses

☐  Documentation for any proposed earnings adjustments (for example, a one-time repair or a non-business expense)

☐  A list of debts, loans, leases, and other financial obligations, with balances and terms

☐  Accounts receivable and payable summaries, if applicable

☐  Sales by month or season, if the business is seasonal

 

About earnings adjustments. Buyers often look at seller’s discretionary earnings, which adds certain owner benefits and non-recurring or non-business items back to profit. Every adjustment needs documentation. Owner draws should not automatically be treated as expenses to add back, and only one owner’s compensation is typically considered. Discuss proposed adjustments with your accountant and advisor.

 

Questions to ask yourself

•  Do my tax returns and internal statements tell the same story?

•  Could I explain any unusual year, such as a dip in revenue or a large one-time expense?

•  Are personal expenses running through the business? If so, can I document and reduce them?

 

 

SECTION B

Operations and Owner Involvement

 

A buyer is purchasing a business they will need to run. The more the business depends on the current owner’s personal relationships, knowledge, or daily presence, the more questions a buyer will have about how it performs after a transition. Documenting how the business operates helps a buyer picture taking it over.

Checklist

☐  A list of your responsibilities and approximate weekly hours

☐  Written operating procedures for key tasks (opening, closing, ordering, scheduling, billing)

☐  A list of key employees, their roles, and how long they have been with the business

☐  Notes on transition needs: who would need to be introduced, trained, or retained

☐  Major customer relationships and approximate share of revenue

☐  Major supplier and vendor relationships and terms

☐  Any customer concentration, where a few customers account for a large share of revenue

☐  Tasks or relationships that currently depend only on you

 

Why owner involvement matters. A business that can run for a week without the owner is often easier for a buyer to evaluate and finance. If you are central to every decision, consider which responsibilities could be documented or delegated over the coming months.

 

 

SECTION C

Agreements and Business Assets

 

Buyers and their advisors will want to know what is included in a sale and whether important agreements, licenses, and assets can transfer. Gathering these documents early helps identify items that may need professional review.

Checklist

☐  Equipment list with approximate age and condition

☐  Inventory records and how inventory is counted and valued

☐  Important customer and supplier agreements

☐  Franchise agreement, if applicable, and any transfer requirements

☐  Licenses and permits, and whether they can transfer or must be reissued

☐  Business name, website, domain names, phone numbers, and social media accounts

☐  Software subscriptions and other accounts the business relies on

☐  Items that may need review by an attorney or accountant

 

Questions to ask yourself

•  Which agreements require consent from another party to transfer?

•  Are any assets owned personally rather than by the business?

•  Is anything I consider part of the business not documented anywhere?

 

 

SECTION D

Lease and Real Estate

 

Location can be one of the most important parts of a business sale. Whether you lease or own your space affects what a buyer is purchasing and how a transaction may be structured.

Checklist

☐  Current lease, including term, renewal options, and rent

☐  Assignment requirements: whether the landlord must approve a new tenant

☐  Whether the real estate is owned or leased

☐  If owned, whether the real estate might be included, retained and leased to the buyer, or sold separately

☐  Any known maintenance, zoning, or building issues

☐  Questions to discuss with the appropriate NHS advisor

 

 

SECTION E

Goals and Transition

 

Clarity about your own goals helps shape the kind of sale that fits you. Your timeline, your role after closing, and what matters most to you personally all influence how a sale is planned.

Checklist

☐  Your main reasons for considering a sale

☐  Your preferred timeline, including any dates that matter to you

☐  How involved you would like to be after closing (training period, consulting, or a clean exit)

☐  Personal priorities, such as care for employees, customers, or the community

☐  Whether you would consider some form of seller financing (discuss with your advisor)

☐  Your transition expectations and what a successful handoff looks like to you

 

 

SECTION F

Confidentiality and Next Steps

 

Word that a business may be for sale can unsettle employees, customers, and suppliers. A thoughtful plan for confidentiality protects the business while you explore your options.

Checklist

☐  Who currently knows about a potential sale

☐  A plan for when and how to share sensitive information, and with whom

☐  Use of confidentiality agreements before sharing detailed financials with prospective buyers

☐  Questions you want to ask in an initial broker consultation

☐  A list of records still to gather from sections A through E

 

 

Ready to Talk Through Your Next Chapter?

 

When you’re ready, request a confidential conversation with our locally owned team. We’ll listen to your goals and help you understand your options, with no obligation to list.

 

This checklist is an educational preparation tool, not a business valuation or legal, tax, or financial advice. Consult qualified professionals about your specific situation.