When seeking an opinion of value for selling a business, you typically need to provide certain information and documentation to the professional providing the valuation. Here are some key items that may be required:
- Financial Statements: Prepare and provide your business’s financial statements, including balance sheets, income statements, and cash flow statements. These documents should cover the past three to five years to help assess the historical financial performance of your business.
- Tax Returns: Provide copies of your business’s tax returns for the past three to five years. These returns will help verify the financial information and provide additional insight into the profitability and financial health of your business.
- List of Assets: Create a comprehensive list of all the tangible and intangible assets owned by your business. This includes items such as equipment, inventory, real estate, intellectual property, patents, trademarks, and customer databases.
- Lease or Real Estate Documentation: If your business operates from leased premises or owns real estate, provide relevant lease agreements or property documents. These documents will help assess the lease terms, rental obligations, and the potential value of the location.
- Customer and Supplier Contracts: Compile a list of significant customer and supplier contracts, as well as any ongoing commitments or obligations. These contracts can demonstrate the stability and strength of your business relationships and may influence the valuation.
- Organizational Documents: Provide copies of your business’s organizational documents, such as articles of incorporation, bylaws, operating agreements, partnership agreements, or any other legal documents that define the ownership and structure of the business.
- Marketing Materials: Share any marketing materials or brochures that provide an overview of your business, its products or services, competitive advantages, and market positioning. These materials can help the valuator gain a better understanding of your business and its unique value proposition.
- Industry and Market Information: Share relevant information about your industry and market, including industry reports, market analysis, and any trends or developments that could impact your business’s value. This context helps the valuator assess the competitiveness and growth potential of your business.
- Other Relevant Documents: Depending on the nature of your business, there may be additional documents that provide insights into the value and potential risks or opportunities. These could include licenses, permits, intellectual property registrations, key employee agreements, or any legal disputes or litigation.
By providing comprehensive and accurate information, you enable the valuator to conduct a thorough analysis and provide an informed opinion of value for your Florida business. Working with a professional business appraiser or a business broker experienced in valuations can help ensure you provide the necessary documentation and information specific to your business and industry.