PREPARING YOUR BUSINESS FOR SALE

Buyers ask a lot of questions when looking at buying a business, so it’s a good idea to have your business documents organised and up to date.

Below is a guide to the type of information that is asked for by buyers:

Finances and Assets

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• Financial statements (for as far back as possible) – cash flow statements, annual turnover, and profit and loss statements

• Details of physical assets such as equipment, and stock

• Details of other assets such as goodwill towards the business and intellectual property

Legal information

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• Legal documents such as leases and insurance policies

• Registration papers such as business name certificates, Australian Business Number (ABN) registration papers, licenses, and permits.

Business Profile

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• Business history such as start date, ownership changes, and location changes

• Sales information such as reports and forecasts

• Market conditions such as details of competitors, and how your business compares to them

• Business documentation such as marketing, staff roster and customer service procedures

• Other such as opening hours

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Staff, Supplier, and Customer Information

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• Employee details such as job descriptions, skills and pay rates

• Supplier details such as supply agreements and supply prices

• Customer details such as customer numbers, customer profiles and direct marketing activities

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Check List

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The next steps directly after we have listed your business will be for you to have the following information ready for buyers that are showing a keen interest in looking at your business.

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The information is also required for due Diligence by buyers

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• Roster showing all staff including if the owner is on the roster. ̈ Staff pay rates

• Business registration

• Full equipment list

• Invoices from coffee supplier to prove amount of coffee purchased

• Full lease

• Profit & Loss showing turnover, cost of goods, outgoings, wages, profit, and costs ̈ BAS Statements

• Proof of daily takings

• Rental Invoices

• Electricity Invoice

• 4 weeks actual till receipts

• Proof of insurance cover

• BAS Statements