The following information is required
in order to prepare recommendations regarding a business acquisition
- whether it is a proposal that someone acquire (buy) your
business, or you are considering the purchase of another concern.
This list notes the items required, and their receipt.
Check
if:
Required
Received
Three years of business income statements,
balance sheets and income tax returns.
Detailed monthly income statements
and bank balance statements for last twelve months
Annual turnover of customers. Indicates
the percentage of business done on repeat basis.
Client banking references to be
contacted.
Primary vendors to be contacted.
A detailed description of business,
including products, services, marketing and competitors.
The present owner’s perspective
of the business including what is needed to maintain current
sales, cope with market or technology changes and how
the owner would expand the business.
List of employees including years
of service, hours worked, duties, salary, benefits, and
the owner’s evaluation of that employee.
Detail of total owner compensation
including all perks, family salary, insurance, club, related
director fees and all other benefits.
Outline of owner’s daily
involvement in business and the duties generally performed.
List of the intangibles that the
owner now offers to the business, such as personal contacts,
sales or personal guarantees of business debts.
Details of customers including %
of sales, account aging and description of the largest.
Details of vendors, if purchases
made on account and are trade discounts being taken.
Marketing brochures, sales literature,
and copies of advertisements and mailers.
The formal Business Plan, if available.
List of current contractual relationships,
such as employment contracts, customer or vendor contracts,
maintenance agreements, loans and equipment and occupancy
leases.
Description of any patents or copyrights.
Capital required to operate business
until sales are made and receivables start being collected.
(Business cash flow cycle.)
Financing available for the proposed
purchase, including potential terms:
