A PREVIEW FROM THE CHECKLIST
Why Preparation Matters Before Listing
Buyers, lenders, and their advisors all want to understand how a business earns money, how it runs day to day, and what a transition would involve. Owners who can answer those questions clearly, with documentation, are generally better positioned for a confidential, orderly process.
Preparation also gives you time. Gathering records, reducing personal expenses that run through the business, and documenting key processes can take months. Starting early lets you address gaps on your own schedule instead of under the pressure of a buyer’s deadline.
Just as important, preparation helps you clarify your own goals: your preferred timeline, how involved you want to be after closing, and what matters most to you for your employees and customers.
What Financial and Operational Records Buyers May Request
Requests vary by business and buyer, but serious buyers and their lenders commonly ask to review:
• Business tax returns and financial statements, ideally covering three years where available
• Current year-to-date profit and loss and balance sheet
• A list of debts, leases, and other obligations
• Documentation for any proposed earnings adjustments
• Key customer and supplier relationships, and any customer concentration
• Equipment and inventory records, licenses, and important agreements
Clean, consistent records that match your tax returns make it easier for a buyer to understand the business and for a lender to evaluate financing. Every proposed adjustment to earnings needs documentation, and owner draws should not automatically be treated as expenses to add back.
How Owner Involvement Can Affect a Transition
A buyer is purchasing a business they will need to run. When customer relationships, pricing decisions, or day-to-day know-how live mainly with the owner, buyers will naturally ask how the business performs after that owner steps away.
Documenting your responsibilities and weekly hours, writing down key procedures, and identifying employees who can take on more responsibility can make a transition easier to plan. It also helps you decide what role, if any, you would like to play after closing, such as a defined training period.
This overview is educational and is not a business valuation or legal, tax, or financial advice.
Who This Is For
This checklist is for business owners considering a sale now or in the future — including owner-operated businesses and businesses with or without real estate.
Requesting the checklist does not commit you to listing your business. It’s simply a practical place to start, on your timeline.
INSIDE THE COMPLETE CHECKLIST
The Full Guide, Free Online
Checklists and questions organized into six sections:
☐ A. Financial records
☐ B. Operations and owner involvement
☐ C. Agreements and business assets
☐ D. Lease and real estate
☐ E. Goals and transition
☐ F. Confidentiality and next steps
Plus guidance on earnings adjustments, owner involvement, leases, and confidentiality.
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