Recap of Documents for the Buyer

Documents for the buyer

1. Outline of the Business
2. Organization Chart
3. Reason for selling

Documents for the buyer after a Non-Disclosure Agreement is in place:

1. Market Share assessment
2. Financial Statements – 5 years
3. Income tax returns – 5 years
4. Name of Professional Accountant
5. Contracts – Leased property
6. Bank Loans, Collateral and Bank Manager contact
7. Major Assets Original Cost and Book Value at previous year-end
8. Capital Reinvestment – recent 5 years
9. Capital Plan for next year
10. Inventories owned
11. Inventories on consignment
12. Customer List, credit terms, repeat customers
13. Insurance coverage, agent name, recent claim experience
14. Property Taxes, assessment notice
15. Professional Evaluation report, name of broker
16. List of “key” employees, position, responsibilities, wages, bonus programs
17. List of other employees, position, responsibilities, wages, expertise, years of service, promotions
18. Employee training programs sponsored by employer
19. Annual evaluation program and related expectation for wage increases
20. Methodology to determine the selling price range