Three Years of tax returns for the business (Federal only)
Current year to date information, if available. Ideally this year vs
last.
List and amounts of moneys paid for the owner(s) benefit. If
multiple owner(s) need breakdown by owner. This would include
salary, benefits, and other personal items that a new owner may or may
not decide to pay when they own the business
General information about the business and the industry. Most
owners can answer these questions without gather facts.
For Buyers
Your Salary requirements
Cash to Invest
Return expected on investment
Asking price of the business
Asking price of the real estate (if appropriate)
Seller financing available (need amount or % of purchase price)
Rent currently paid by company (if Real Estate purchase being
considered)
Cash Flow of the business
Capital needs when purchased. How much money will you need
once the business is purchased? The current owner can usually
tell you this. But typically you need some money to make sure
you can pay employees or continue to buy merchandise while waiting
on customers to pay you. If you can't find out, we can help
you come up with a number based on the current business financials.
Annual Capital needs. How much money you may need annually
to reinvest in the business. This is typically to buy new
equipment or upgrade technology or facilities. If you don't
have a number, we can help you come up with a number based on
current financials and your plans for the business.
Quick Valuation Report
Full Valuation Report
All the items listed for the Quick Valuation report above
Three years of tax returns, or financial statements for the
business.
Cash flow per the seller or the seller's broker.
Items to confirm the cash flow. I cash flow provide by
broker, understand what each adjustment on the cash flow statement
represents. If no cash flow statement provided by
seller/broker then create a list and amounts of moneys paid for the
owner(s) benefit (ideally by year). If multiple owner(s) need
breakdown by owner. This would include salary, benefits, and
other personal items that you, as the new owner, may or may not
decide to pay.
Customer base sensitivity. In other words, how many
customers does it take to represent 30% of business. What
about 50%. Are they dependent on just a few customers, or is the
business spread over many customers?
