Smallworldsocial. (January 2014). Small world social teamwork. Retrieved from [CC BY-SA 3.0 ( or GFDL (], via Wikimedia Commons

Smallworldsocial. (January 2014). Small world social teamwork. Retrieved from [CC BY-SA 3.0 or GFDL (], via Wikimedia Commons

In Preparing to Sell Your Business, several aspects of preparing a business valuation were reviewed. Each item will help prepare you for the day that you meet a potential buyer. By having key documents prepared ahead of time, you will impress that buyer and significantly enhance your opportunity to close the deal.

Determining the market share and how your business has grown over the past several years is likely one of the most important documents a buyer will want to see. Preparing yourself for many probing questions will confirm your decision to put the business up for sale. The questions will be challenging and may uncover opportunities that you had not considered; however, the main purpose is for the buyer to understand the business sufficiently well to make the decision to give an offer. A properly executed Non-Disclosure Agreement will provide protection for the seller to be more comfortable sharing business information, and will restrict the buyer from sharing the information with others.

Over the years many important contracts will be in place, such as loans with assets pledged in case of default. Lists of customers, suppliers, and assets are often shared documents. Leases and leasehold improvements are important contracts.

One challenging area is the value of the employees; this is likely the largest non-cash asset in a business. Identifying key employees, wages, incentive programs, and succession programs are very relevant to your purchaser.

Valuing any intellectual property and the method of determining that value is also important.

Overall, the goal is to have sufficient current documents available to share with the prospective buyer prior to meeting that individual.

As a seller it would be worth your time to read Preparing to Purchase a Business, in the Buyer section, and make certain that you are prepared for the day when the right buyer meets you.

In Positioning your Business for Sale, you will review the importance of shareholder agreements, define goals and priorities, and review other professionals’ contribution to the process.