Selling Packet for Prospective Buyers

Selling your business may take less time if you can show prospective buyers the advantages and the upside potential of owning and operating your business. All the following necessary items should be included in your presentation and due diligence package shared with the prospective buyer.

Before any details of your business are shared with the prospective buyer, they will need to sign a confidentiality agreement that is either prepared by your attorney or is provided by Established Business Opportunities. Once an interested party signs and returns the agreement, the Selling Packet will be sent to the prospective buyer with all pertinent documents for them to begin their review. No doubt, they will have questions and observations after their review, but the Sales Packet sent to them will go a long way to answer questions but will also be invaluable in guiding them with additional questions and observations. The Sales Packet should include:

Updated and Applicable Financial Records:

This includes all updated financial records, updated EBITDA, copies of your profit and loss statements, balance sheets, tax returns, and business bank statements for the past two(2) to three (3) years. These documents hold the key information for a buyer and/or their accountant they may hire to analyze your business.

List of Assets & Liabilities (if any):

The Selling Packet should also include all the assets and liabilities of the business that will be transferred to the new owner at closing. Your assets may include real estate, furnishings, equipment, vehicles and receivables. Liabilities typically include transferable debt, accounts payable, work in process that you have been paid for (all or a portion), and employment contracts, etc,

Leases & Other Contracts:

Copies of leases and other contracts should be put into the Selling Packet. This would include agreements with vendors, office/warehouse space, vehicles, or any commitment to any company that will remain in force after the sale.

Showing the Legality of Your Business:

To ensure that the prospective buyer knows that you are a legitimate and legal enterprise, provide the buyer, in the Selling Packet, a copy of your Business License, any permits required and held, as well as any other special requirements necessary to operate your company.

Business Prospectus:

This prospectus should include the size of your market share along with demographics proving that your target market is sufficient to support your business and the competition in the surrounding areas. It would be nice to provide a graph showing the amount of sales you currently have compared to the total market and how much growth they can achieve.

List of Major Customers:

Provide a list of major customers who are, have been, and may contract with your business in the future. A prospective Buyer is much more likely to make a fair offer for your business if they can see proof of an ongoing relationship with past customers.
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A Selling Packet with all the information above will help cement a buyer’s willingness to buy your business and their willingness to pay the fairest price to acquire it. ​​​​​​​