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Seller Preparation
Checklist Generator
Get a customized, actionable checklist to prepare your business for sale — organized by category and timed to your exit timeline.
📋 Your Seller Preparation Checklist
Disclaimer: This checklist is general guidance — not legal, tax, or financial advice. Business sales involve complex legal and tax considerations that vary by jurisdiction, deal structure, and circumstances. Consult a business attorney, CPA, and M&A advisor before proceeding with a sale.
Templates You'll Need
Frequently Asked Questions
Most advisors recommend starting 12–24 months before listing. This allows time to clean financials, reduce owner dependence, resolve legal issues, and demonstrate sustainable growth. Rushing a sale often results in 10–30% lower valuation.
Buyers typically want 3 years of tax returns, 3 years of P&L statements, current balance sheet, AR aging report, inventory list, and bank statements. Clean, accountant-prepared financials significantly increase buyer confidence.
A Seller Disclosure Schedule documents known issues, liabilities, pending litigation, employee matters, and material facts. Full disclosure protects sellers from post-closing claims. See our Seller Disclosure Schedule template.
For businesses under $5M, brokers charge 8–12% but provide qualified buyer screening, confidential marketing, and negotiation support. For businesses over $2M, an M&A advisor or investment banker may be more appropriate.
Use blind listings; require NDAs before sharing details; tell employees only when the deal is near-certain; use a broker as intermediary. Premature disclosure can damage employee morale, customer confidence, and vendor terms.
Recasting adjusts net income to show true earnings available to a buyer — adding back above-market owner salary, personal expenses, one-time costs. Proper recasting increases SDE and valuation. Work with a CPA familiar with business sales.