Assemble Financial, Legal and Descriptive Documentation
This is the time to ensure that all required documentation is, in fact, available for use in the upcoming steps to sell your company.
General Documentation Preparation
Owners should:
- Create or review business and marketing plans
- Assemble 3 to 5 years of past financials and generate future projections based on several reasonable sets of market assumptions
- Prepare company presentation materials including history, management team profiles and financial accomplishments
- Organize due diligence materials as referenced in Step 2 above e.g. historical financial documents, managerial profiles, operational manuals, competitive outlook, legal issues, intellectual property rights and other substantive material of interest to a potential buyer
Expected timing of need for disclosure of documentation
The disclosure of your company information will follow a generally predictable path, which also serves as a guideline for when you will need to be ready with business documentation. Here is an overview of that process:
As part of the SellPQ Process, you will find in Step 5 that there are comprehensive Seller’s Vault templates available to both aggregate and distribute information about your company. In Step 3, you will begin to assemble important financial, legal and descriptive information about your company. This data can be entered sequentially into the Seller’s Vault templates as time and availability of the information permits. Some documentation might have to be created from scratch, such as your company history, but the sooner you can aggregate all of the above materials and have them stored in the Seller’s Vault, the better. Here are the types of information Buyers often request:
PQ can refer you to third-party advisors for Step 3 including Wealth Managers, Tax Consultants, Lawyers, Accountants and more.
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