1. Continue to make money.
Get your financial house in order
a. Review monthly reserves and accruals. Typical issues include:
- Allowance for bad debt
- Vacation accrual
- Deferred tax
- Taxes payable
- Inventory reserves
- Warranty reserve
b. Have your financial statements audited.
3. Collect past-due accounts.
Sell non-operating assets and excess/obsolete inventory.
5. Make sure federal, state, payroll, and sales tax filings are accurate and up-to-date.
6. Spruce up the office premises. Make any needed repairs and paint touch-ups. You never
get a second chance to make a first impression.
Resolve legal disputes. The buyer will not inherit
your litigation without a significant cost to you.
Make sure your contracts are assignable so
they’re easily transferable to a buyer in a sale of your assets. It is preferable if they are assignable without
Execute non-compete contracts on your key employees
and confidentiality agreements with all employees.
Make certain your patents, licenses, and trademarks
have all been filed properly.
Golden Rule for Sellers: Operate your business as
if there will be no transaction.