Tools
For selling your company
Tools for Selling your Business
Online Business Value
Calculator
Decision
Checklist
Some of these decisions are quite complex and professional input is recommended.
Your Equitas broker can provide background on all these topics. Contact us.
- Will you be selling Assets or Shares?
- Decide the working capital amount and components
- How much vendor-take-back (VTB) financing will you offer?
- If offering a VTB loan, for how long and at what interest rate?
- What transition assistance will you provide?
- Is the company able to function without you?
- What reasons will you state for selling?
- Are all shareholders on side?
Financial and Business
Acronyms
Tools for Selling your Business
Online Price
Evaluator
Preparation
Checklist
Some preparations are legal, some just common sense. If you need clarification, please contact us.
- Bring the corporate minute book up to date
- Pass resolutions authorizing the sale and the broker
- Confirm that all shareholders are in agreement
- Confirm agreements for intellectual property use
- Review website for accuracy and timeliness
- Test website links
- Check social media comments
- Confirm and update online directories
- Clean up the facilities
Tools for Selling your Business
Access to Professional
Price and Value Tools
Document
Checklist
You won’t require everything on this list before starting the selling process.
And a small number of these items might never be requested, but the due diligence process can be very thorough and advance preparations are advised. This list is grouped by function. When you engage our firm, we will divide this list into phases based on need. If you have questions, contact us at any time.
GENERAL LEGAL
- Incorporation documents
- Corporate minute book
- Current/pending litigation
- Current loan agreements
- Insurance policies
- Intellectual property documents
FINANCIAL STATEMENTS
- General Ledger – past 3 years
- Trial Balance and GL – current year
- Trial Balance and Journal Entries – 3 years
- Capital Asset Roll-forward Schedule – past 3 years
- Financial Statements for the past 5 years + updated statements every quarter
- Bank statements – past 3 years
- AR Listings – past 3 years
- AP Listings – past 3 years
- Sales Invoices – past 3 years
- Significant Vendor Invoices – past 3 years
GOVERNMENT
- Tax Returns and Notices of Assessment – 5 years
- HST filings – 3 years and current year
- Revenue Canada audits, enquiries & correspondence – 3 years
- Anything relating to proceedings of any regulatory agency
- Workers Compensation claims or issues – 3 years
- Government licenses, permits or consents
FACILITIES & EQUIPMENT
- Facility lease
- HST filings – 3 years and current year
- Facility maintenance contracts
- Equipment leases and maintenance records
- Equipment list with values and status
ENVIRONMENTAL
- A list of any hazardous substances used by the company
- Descriptions of any environmental litigation or investigation
HUMAN RESOURCES
- Organizational chart
- Employee functional summary
- List of managers with details
- Employment contracts
- Schedule of employee benefits
- Employee legal issues – last 3 years
PROCEDURES, PROCESSES AND CONTROLS
- Order Processing
- Purchasing Procedure
- Inventory Management
- Quality Assurance
- Cost Accounting
- Sales Terms
- Shipping
- Receivables and Payables
MISCELLANEOUS
- The company’s credit report
- Business plans and ideas
- Product lists
- QA specifications
- ISO certificates
- Online and website passwords