A professional business valuation appointment with an experienced Illinois business broker is the most valuable first step any business owner considering a sale can take. The more prepared you are, the more accurate and actionable the valuation will be. Here is how to prepare.
Financial Documents to Gather
Bring (or be ready to share electronically): the most recent three years of business tax returns, the most recent 12 months of monthly P&L statements, your year-to-date P&L, and a list of owner benefits that run through the business (compensation, health insurance, retirement contributions, personal vehicle, phone, etc.). If you have multiple revenue streams, bring a breakdown showing revenue by category. The valuation is only as accurate as the financial information it is based on.
Operational Information to Prepare
Be ready to discuss: how long the business has been operating, how much time you personally spend in the business, your role vs. staff roles, the status of your lease (term remaining, monthly rent, renewal options), your employee count and key staff, any significant customer relationships and their concentration in your total revenue, and any known issues with the business (pending lease renewal, aging equipment, regulatory matters).
The valuation meeting is also a two-way conversation — it is your opportunity to ask the broker about their experience selling similar businesses in Illinois, their marketing approach, their buyer network, and their success rate. Come with questions and treat it as an interview of the broker as much as a consultation for you.