Selling a business is a complex process. It requires extensive preparation and an understanding of the legal, financial and operational documents that are necessary for a successful sale. This article will answer the question: “What documents are needed to sell a business?”

What documents are needed to sell a business?

When it comes to the documents needed to sell a business, the list is extensive. From financial documents to legal agreements, there are numerous documents that must be compiled in order to ensure a successful sale. Here is a breakdown of the documents that are typically needed to sell a business:

Financial Documents

Profit and loss statements for the current and past two to three years are essential when selling a business. In addition, a current balance sheet, cash flow statement, and statement of liabilities must also be compiled.

Legal Documents

When selling a business, a Non-Disclosure Confidentiality Agreement and an Offer-to-Purchase Agreement must be prepared. Additionally, a current Lease Agreement and a Personal Financial Statement Form for Buyer to Complete must be included.

Business and Operational Documents

Businesses that are part of a franchise must include a franchise agreement in their documents. Any licenses, certifications, and permits necessary for the business to legally operate must also be included.

Here is a full list of documents that are needed to sell a business:

• Profit and Loss Statements
• Cash Flow Statement
• Current Balance Sheet
• Business Plan
• Franchise Agreement (if applicable)
• Licenses, Certifications and Permits
• Non-Disclosure Confidentiality Agreement
• Personal Financial Statement Form for Buyer to Complete
• Offer-to-Purchase Agreement
• Current Lease Agreement
• Insurance Information
• Tax Returns
• Employment Agreements
• Asset List
• Accounts Receivable and Accounts Payable
• List of Intellectual Property

If you’re looking to sell a business, it is important to make sure that you’ve compiled all of the necessary documents. To find out more about the documents needed to sell a business, or for more information about the business sales process in general, visit Atlantabusinesses.com. Atlantabusinesses.com is a great resource for answers to all your questions about selling a business and about business brokers.

What paperwork is needed to transfer ownership of a business?

A business bill of sale is a document that formally records the sale and transfer of ownership of a business and its assets. It outlines the terms of the sale, outlines the details of both the buyer and seller, and serves as evidence of the transaction.

What information needs to be provided upon the sale of a business?

Before signing a contract of sale when selling a small business, the seller may need to provide the prospective buyer with a vendor’s statement (or Section 52 statement) which contains relevant financial and taxation details regarding the business.

Are you required to provide bank statements when selling a business?

Generally, federal income tax returns and bank statements are only displayed after an offer has been accepted. Buyers usually ask for bank statements in addition to the financial documents, and it’s important for the bank statements to be consistent with the financial documents.

What documents are needed for a sale?

I need an RFI for internal use, a buyers list for internal use, a Confidentiality Agreement, a one-page flyer, an Information Memorandum, a financial model, specific documents for buyers, and legal documents.