Preparation

There are a number of documents that we will need to review, and the preparation of these in advance will ensure that our discussions will be more productive from the beginning.

Documentation To Inform Company Valuation

• At least three years of financial statements (income statements and balance sheets, ideally with a statement of cash flow at the end of each fiscal year period), along with the years' corresponding tax returns
• For sole proprietorship, Schedule C and associated statements
• For Partnership, Form 1165
• For Corporation, Corporate Tax Returns
• Current year to date income statement (profit and loss) and statement of cash flows
• If applicable, a list of inventory for resale showing the cost of that inventory, and purchase dates
• List of furniture, fixtures and equipment (FFE, or "Fixed Assets") that will transfer with the company sale.  Often a depreciation schedule from the tax return is the best place to originate the list.
• Copies of leases, including facility, and equipment leases as applicable
• Copies of liens, promissory notes or outstanding encumbrances
• Copies of company marketing materials
• If applicable, copies of special licenses required to operate (not standard business licenses)
• Documentation supporting company-owned intellectual property that would transfer with the sale of the company
• If there has ever been a prior company valuation, this would be very helpful to bring to the meeting