Search:

Get Ready to Sell Your Company, part 1

Part 1 - Business Documents
Of course, you will need current financial statements, preferably several years of statements, and tax returns. A separate article will discuss the issue of whether these documents should be audited or unaudited, and other Sarbanes-Oxley kinds of issues. You will also need a confidential descriptive report, aka CDR, or the selling prospectus - the marketing materials that will help you sell the company. What should be included in the CDR, and who should write it, is yet another article.

Here is a list of commonly requested documents. You will need them at some point in the due diligence process.

* Company human resources policy manual.

* Agreements with major customers and vendors

* Corporate articles of incorporations and by-laws and stock certificate book

* Minutes of board and shareholder meetings.

* Copies of employment contracts for senior management, union, independent contractors, consultants

* Employee profit-sharing, insurance stock bonus, deferred compensation and severance plans

* Status of all intellectual property: patents, trademarks, copyrights, domain names, licensing agreements

* Copy of leases, title to property

* Payroll reports

* Inventory status and policies

* Accounts and notes payable and analysis

*Analysis of loan and mortgage debt

* Accounting procedures and practices

* Status of information technology systems

* Shareholder agreements

* Organization chart

* Environment review including hazardous material management air emissions, water quality, EPA issues and the like Although this list is long enough to be disheartening, it is not comprehensive.

Luckily, not all items will be required to sell your firm. But most of these documents will be required at some point during the sale. This is part of the reason that managers have a hard time selling and managing the company at the same time - the demand for documents can be as strenuous as litigation! Unfortunately, business brokers dont usually prepare, edit, review or approve these documents.

Copyright Midmex All Right Reserved
Please contact: editor at midmex dot com for permission to reproduce
Telephone: (877) MIDMEX1 or (877) 643-6391

Article Source: http://www.articlepyramid.com

About the Author (text)

Dr. Mark Heitner is the founder of MidMEx (www.midmex.com). Many patients have been owners of mid-sized companies with a business for sale. MidMEx provides verified buyers and expert business appraisers, brokers and attorneys. Many resources are available to help owners sell the business.

invest in stock

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Business Articles Via RSS!

Additional Articles From - Home | Business

Join Helium Now. Earn Cash When You Post. Try It!

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds

New Stuff
About Us
Site Blog
Forum
Link to Us
Contact Us
Privacy Policy
Terms of Service

Article Pyramid Link Directory
Articles 4 Me And U.com
Particle Articles.com
Internet Marketing Blog
Credit Repair Tips