There are several steps to follow when preparing to sell your San Diego business and the preparation alone can often require many months to a year or more. Why does it take so long to prepare your business for sale? The simple reason is many owners of LLCs, S Corporations and even C Corporations do not keep up to date with business financial records and the documentation required to successfully sell or transfer a business. Recently a local company was approached by a major international tech company with a seven figure offer. The original deal between the parties was reached fairly quickly. The challenges quickly arose during due diligence. Business owners in this competitive global marketplace must be prepared to make significant business decisions on the fly. Many opportunities arise without warning. You may not have awakened this morning expecting to sell your business, but an unexpected knock on the door or changing market conditions may present an opportunity. Allen Barron’s integrated legal, tax, accounting and business advisory services help to make the process easier while providing sound counsel based on the higher and broader perspective of the various disciplines and how they inter-relate.
Organizing and preparing financial information is the first step of preparing to sell your San Diego business or company. Usually you will need at least the last three years of tax returns, bank statements and business financials which should include a “Profit and Loss” statement as well as a “Balance Sheet.” Experienced and knowledgeable buyers will want to know the “Adjusted Net Income” for the past three years as well. An overview of the business you offer should include a comprehensive list of all assets, equipment, intellectual property, product inventory, existing suppliers and customer information. This should include all real estate and associated mortgages or leases, as well as copies of contracts with present suppliers, sales and services agreements.
If you intend to sell your business Allen Barron’s professionals guide you at each step of the process. It is often necessary to obtain an independent valuation or appraisal to establish the basis for an offering price. The data provided by the valuation/appraisal expert(s) supports our negotiations to achieve the maximum value for the business you’ve worked so hard to build. This information also assists potential buyers with their own financing efforts and speeds the process of completing the transaction.
Allen Barron’s legal team prepares the necessary “Confidentiality Agreements” and/or “Non-Disclosure Agreements” which protect you and your company throughout the process. Our work together keeps the “Due Diligence” portion of the transaction to a minimum number of days as all of the essential financial and business information is organized and ready for review. If you would like to learn more about preparing to sell your San Diego business we invite you to contact us for a free consultation at 866-631-3470. Business brokers cannot provide the integrated legal, tax, accounting and business expertise provided by Allen Barron and required to complete this process. Our convenient one-stop solution helps you to complete your goals quickly while leveraging economies of scale.