• Profit and loss statements for the past 3-4 years
• Tax return details of the business
• List of equipments and fixtures
• The lease documents and everything related it.
• Loan documents that are related to your business.
• Copies of equipment leases.
• Copies of franchisee agreement (if that is applicable)
• List of inventory you have.
• Copies of legal documents that are related to your business.
Preparation
If you are small business owner, then gathering all the above items would take some time and after you have finished gathering all these, update all the information and complete the blanks. Make sure that you offer correct and updated information and have a good look at them. Arrange all the above documents in an orderly manner, so that you can present it to the prospective buyers. If you are halfway in the present financial year, then make sure that you have all the financial details like tax returns etc. of the last year and make all the details presentable so that you can show it to the buyers.
Prospective buyers would definitely review the details offered by you and would want to see the income and expenses as well. They would want to know whether your business is making any profits and most buyers would not buy a business that is running in losses. However, you might come across few buyers who are willing to take the risk.
As far as the buyer is concerned, it is important that you look for someone who is serious and when you look for buyers, try and know why they want to purchase your business. Many people buy a business after their retirement or due to job dissatisfaction. There are many things that the buyers would want to know regarding your business and some of them include the price of your business and how they can make the payments, inventory stock, annual increase in sales and various such things.
For more details please visit at http://businesshunters.co.za/
