Once you list your business, you are going to have interested buyers! Those buyers are going to want information. At first, basic information is fine, but then once you get a more serious buyer they are going to do due diligence and ask you about your finances and other aspects related to the business.

Make sure you have everything cleaned up and organized to make it a smooth process!

Some things they will ask for during due diligence may include:

• Organizational documents for the business (e.g. incorporation docs, certificates of good standing, business licenses, etc.)
• Previous 3 years of business tax returns
• Current year income statements, balance sheets, and cash flow statements
• Revenue broken out by customer for the last 3 years
• Information on existing business debt
• Customer lists with proprietary information blocked out as necessary
• Existing contracts—can these be assigned to the new owner?
• Commercial lease or other property documents
• Rent rolls if the property has tenants
• Uniform franchise disclosure document (if the business is a franchise)
• Employee and manager information
• Marketing and advertising materials
• Legal records for pending litigation, if any