Preparing your Business for Sale

Documentation and Information Required

Preparation is key when selling a business. It is important to ensure that management information is up to date, readily available and clearly presented.

Hornblower helps sellers to prepare this information and will produce a full Information Memorandum to enable buyers to make an informed decision whether to proceed.

The following is a list of the Documentation and Information that we will typically need to prepare your business for sale:

1.    Complete set of accounts for the last 3 years including the P&L, Balance Sheet and Cash Flow statement

2.    Current order book and forecast for the next 12 months

3.    List of top 5 to 10 customers and their annual spend

4.    List of top 5 to 10 suppliers and your annual spend with them

5.    Asset list – purchase value and date acquired

6.    Any advertising / brochures / marketing material used

7.    2-3 testimonials – pictures of work done, indicative contract value, feedback and appreciative comments from clients

8.    List of main competitors / competitor products

9.    Staff details: list of permanent and contract, full-time and part-time staff, salary, age, time served with the company, qualifications

10.    Pricing and charge structures (e.g. hourly rates, standard price for a particular service or product)

11.    Copy of a typical client contract with your standard terms and conditions

12.    Premises: freehold or leasehold. If leasehold: terms (duration and next renewal/rent review date), rent and rates