A professional valuation of your business is essential to its marketability. When you are preparing to sell your business, you need to assemble as much information as possible about your business. Full and complete documentation adds credibility and will ensure that you get the best possible price for your business. Once assembled, a detailed valuation of your business can be made. If your broker does not ask you for most of the information on this checklist, he cannot prepare an accurate report.

1. Current year Balance Sheet and Profit & Loss statements (up to date within the last 60 days).
2. Federal Tax Returns for last three years (2007, 2006, 2005).
3. Balance Sheet and Profit & Loss statements for last three years (fiscal or calendar years to match Federal Tax Returns).
4. Please make a second copy of #3 above, noting as they apply to line items on the statements, any references about the following. Use a separate sheet of paper for the descriptions and give specifics:

• Any non-business items such as personal telephone, auto expenses, life and/or health insurance, living expenses or phantom payroll.
• If there is an owner draw in payroll please state amount of draw/salary, wages. If there is more than one family member please state separately. If payroll to a family member(s) is the result of a day to day role in the operation of the company, please describe role, duties, responsibilities and hours worked per week. If the person or persons need to be replaced by the new owner please indicate fair market value of services if you were to hire someone as a replacement.
• Any non-recurring or one-time expenses or revenues, for example, cost of litigation or sale of an asset.
• Any items (sales, cost, or expense) that are non-business related.
• Any items that would change for a new owner like a new premise lease amount.
5. Number of years business has been operating.
6. Number of years owner has been operating this business.
7. Monthly sales/revenues for past 24 months by month.
8. List of your primary competitors and assessment of their impact on your business in the past, today and in the future.
9. Factors affecting the future market for your business products or services.
10. Factors making your business unique from competition.
11. Copy of premise lease.
12. Copy of any equipment leases to be assumed by buyer.
13. Copy of any purchase contracts to be assumed by buyer.
14. List of any litigation past, present, or expected.
15. Copies of brochures, ads and other marketing materials.

• A marketability report comparing your business and its performance to other businesses in the appropriate region of the U.S. in the same category, and approximate business size showing fair market value for your business.
• A reality check of your asking price showing book, fair market and most probable selling price, and, more importantly, the feasibility of a business acquisition loan and buyer's return on cash and total investment.