Miscellaneous – Another important item of a Seller’s Checklist( Part 6 of 6 )
January 30th, 2008 quantumThe final part of our Seller’s checklist series includes all those details that are not included in first 5 parts posted to our blog earlier. Following is a list of items which should be addressed and included as part of the materials provided to a prospective buyer.
Miscellaneous:
- Business Insurance (provide copies of the policy statements or declarations page), including:
□ Group hospitalization and medical
□ Malpractice or Errors and Omissions
□ Workman’s Compensation
□ Business automobile
□ Life (key person and employees)
□ Health and disability
- Any collective bargaining agreements
- Employee stock option plans
- Accumulates sick leave and vacation liabilities
- Severance pay agreements
- Pension Plans
- Simplified Employee Pension Plan (SEP)
- Keogh plans
- 401 (k) plans
- Deferred benefit plans
- A description of any business community involvement
This creation of a prospectus or Sales Memorandum incorporating the various materials from the six part “Seller’s Checklist offers a presentation that educates the buyer on the many intangibles inherent in your business, hence raising the perceived value to the acquirer and communicates to the buyer that the business is well organized and easily transferable. These intangibles include among others, name recognition, market niche, vendor relationships, operation and production systems, distribution channels, customer loyalty and trained and skilled employees.
Thus, the creation of the Prospectus or Sales Memorandum presents the business as unique market opportunity with huge potential for growth and expansion thereby streamlining the process of selling your business.
Key Points To Consider:
• Disclose all relevant information – even negative facts. A buyer wants to be able to trust you. Any indication that you’re not truthful or that you ailed to disclose all pertinent information can put off an otherwise interested buyer. Realize that during the due diligence stage of the purchase a savvy buyer will likely investigate all aspects of your business and discover negative facts anyway.
• Ensure that the business premises are well organized and in good shape. First impressions are very important. At some point, an interested buyer will want to visit the business location and it is important o ensure that you create a good impression. How you maintain the business premises will go a long way toward communicating that the business itself is well organized and running efficiently. Therefore, apply fresh coat of paint, make minor repairs (especially if the repairs are the responsibility of the landlord) and organize and clean the premises.
Keep visiting Quantum™ Blog for more valuable business brokerage assistance.In addition, you can discuss this topic on our forum - www.qbsnet.com/forum - by opening a thread.
