Checklist Of Items To Have Ready For Your Broker
Establishing a reasonable selling price for your business is the first step in helping you make the correct decision about your future. With that in mind, please gather this information and have it available for the meeting with your Sunbelt Broker.
This information is necessary to begin the valuation to establish a reasonable price for your business. Make sure the financial statements of the business are current and as accurate as you can get them. If you're half way through the current year, make sure you have last year's figures and tax returns, and also year-to-date figures. Make all of your financial statements presentable. It will pay in the long run to get outside professional help, if necessary, to put the statements in order. You want to present the business well "on paper." As you will see later, pricing a small business usually is based on cash flow. This includes the profit of the business, as well as the owner's salary and benefits, the depreciation, and other non-cash items. So don't panic because the bottom line isn't what you think it should be. By the time all of the appropriate figures are added to the bottom line, the cash flow may look pretty good.