From Portland Business Brokers Group.
Define the operation separately from the property
A shop, warehouse or service yard may be owned by the business, by you personally or by another entity. A buyer needs to know which arrangement is part of the proposal.
If you plan to keep the premises, work through a realistic lease before discussing adjusted earnings. Cheap informal rent can make the company look more profitable than it will be for the buyer.
Build a closing responsibility list
- Who obtains landlord and contract consents?
- Who handles the final payroll and employee handoff?
- Which registrations or permissions need review?
- Where will the seller's records remain after closing?
The answers depend on whether assets or ownership interests are being sold. Do not close an entity or tax account simply because a purchase agreement has been signed.
Begin with an understandable earnings record
Reconcile sales, expenses and owner compensation before relying on a valuation range. Buyers need a supported picture of the business they would inherit.
An early discussion can identify missing records while there is still time to organize them. It does not commit you to put the company on the market.