Financial Documents Business Brokers Need to Sell Your Business
In commercial business sales Bellflower, it is our job at So-Cal Business Brokers to prepare sellers and their business for the sale process. Part of the initial discussion when you come to us is to identify the documents and records that are needed to substantiate the business as well as answer the most important question; how much is the business worth? When you come to us, here are the main financial documents we will require.
Total sales and earnings records
The first step in the sale of a business is to perform a business valuation. Knowing how much a business is really worth is the starting point of commercial business sales Bellflower. Our business valuation services are complimentary. The first things we will require from you are your total sales and earnings for the last year. This information will be adequate to calculate estimated business valuation.
Profit and loss statements and tax returns
We will request for your profit and loss statements for the last year when calculating seller’s discretionary earnings (SDE). Your tax returns will also give us insight into your business. These documents outline your business’ revenue, earnings as well as deductions. We use this information to calculate SDE.
Signing the Marketing Agreement
Upon determining the real worth of your business, you will need to sign a marketing agreement with So-Cal Business Brokers. Signing the agreement gives our business brokers Los Angeles the green light to start marketing your company. At this point, we will require your profit and loss statements and tax returns for the last three years. This enables us to come up with a sound marketing profile that grabs the interest of buyers. We will also need these documents when applying for lender pre-approval of the business and to develop a recast.
Sharing all this information with us can be nerve racking. You should, however, not fret. We have a non-disclosure agreement that we sign before you send us the documents. This document is legally binding and keeps us from sharing your business’ sensitive information with anybody else. We encourage you to review the terms in our NDA before signing. In addition to that, to maintain confidentiality throughout the sale process, we require our buyers to sign the non-disclosure agreement before they receive any detail about your business. What is more is that we use blind ads when marketing your business to potential buyers. The non-disclosure agreement makes it illegal for us and potential buyers to disclose any information about your business.
Do you want to learn more on how we help sell your business in Los Angeles? Contact us for more in-depth information. Feel free to schedule a free consultation with us and discuss all your options with one of our experienced business brokers.