Preparing your documentation package before going to market is the single most important action you can take to accelerate your sale. Buyers make decisions based on information — the faster you can provide clean, organized information, the faster serious buyers move from interest to offer.
Financial Documentation
The core financial package includes: three years of signed federal tax returns (both business and personal), three years of Profit & Loss statements, year-to-date P&L and balance sheet, and three months of recent bank statements. Sellers of restaurant, retail, and cash-intensive businesses should also prepare POS sales reports and sales tax filing summaries.
Operational Documentation
Beyond financials, buyers need: a copy of the current lease with all amendments, a list of equipment owned by the business with approximate age and condition, a list of current employees with job titles and compensation (without names, for confidentiality during marketing), copies of any significant contracts (service agreements, customer contracts, supplier agreements), and any regulatory licenses or permits.
A Seller's Disclosure questionnaire — completed honestly and thoroughly — is standard in most business sale transactions. This document discloses known issues with the business and protects both parties by establishing what the seller represented at the time of sale. Your business broker can help you complete this document and understand your disclosure obligations under Illinois law.