When taking your business to the market to be sold ou need to prepare an Information pack with the following information:

1.
Selling
your
business
and
creating
a
business
sales
pack
for
the
buyer
The
decision
to
sell
your
business
is
straightforward.
You
worked
very
hard
for
many
years
to
create
your
successful
business
and
naturally
you
deserve
top
value
and
now
it
is
time
to
move
on.
There
could
be
many
reasons
why
you
have
made
the
decision
to
sell.
You
may
wish
to
retire
or
emigrate
or
just
try
another
venture.
Preparing
your
business
for
sale
is
not
an
overnight
process.
It
can
take
months,
if
not
years,
of
planning
to
maximize
your
value.
Always
assume
that
any
potential
buyer
will
do
a
thorough
job
of
due
diligence,
which
will
ultimately
uncover
weaknesses.
Proper
planning
will
identify
current
problem
areas
and
help
you
determine
how
to
treat
them
in
discussions
with
buyers.
There
are
a
few
points
that
you
may
not
be
aware
of
but
the
first
is
that
every
owner
must
realise
that
their
business
is
competing
in
the
market
place
with
other
sellers.
Every
business
is
in
competition
with
other
businesses
for
sale
within
their
Profit
Range
and
general
Industry.
The
next
point
is
that
the
sale
of
a
business
does
take
time.
Internationally
the
average
is
between
6
and
9
months.
Unfortunately
in
SA
we
don’t
have
any
stats,
but
the
reasons
are
generally;
business
is
overpriced;
not
receiving
sufficient
information
or
audited
financials;
hidden
income.
The
phrase
"timing
is
everything"
is
especially
true
when
selling
a
business.
In
evaluating
your
company’s
present
position,
outlook
and
capabilities,
consider
the
following
questions:
1. Are
the
company
and
its
products
reaching
maturity?
Studies
have
shown
the
maximum
value
is
achieved
when
a
sale
occurs
while
revenues
and
profits
are
still
growing
at
or
above
historical
rates.
2. Can
the
company
show
a
history
of
stable
growth
and
profitability?
3. Is
the
industry
reaching
a
mature
stage
or
experiencing
rapidly
changing
technology?
4. Are
the
products
losing
their
uniqueness,
and/or
is
the
company
unable
to
make
the
commitment
necessary
to
invest
in
new
product
development?
5. Is
there
an
adequate
supply
of
raw
materials
and
people?
6. Is
competition
likely
to
increase?
7. Is
the
company
at
or
near
capacity
such
that
future
growth
requires
significant
capital
expenditures?
8. Does
the
company
lack
a
well-­‐defined
strategy
for
future
growth
and
profitability?
More....

2. You
need
to
prepare
an
Information
pack
with
the
following
information:
a. The
last
2
years
audited
financial
accounts;
b. The
most
up
to
date
management
accounts;
c. The
last
12
months
Vat
returns;
d. A
list
of
all
the
assets
(Machinery,
equipment,
furnishings,
vehicles
etc.)
in
the
business
with
a
realistic
second
hand
value.
(Not
depreciated
nor
new);
e. A
list
of
items
on
HP
or
Lease
with
settlements
amounts;
f. A
list
of
trademarks
and
patents;
g. The
approximate
cost
value
of
present
stock;
h. A
copy
of
your
present
lease
of
your
premises;
i. A
copy
of
your
business
licenses
and
registration
documents,
if
applicable;
j. Current
shareholders
agreements
in
place;
k. A
synopsis
of
your
business
with
future
opportunities;
l. List
of
product
and
service
lines
and
related
intellectual
property;
m. A
list
of
your
businesses
key
competitive
strengths;
n. A
summary
of
competitors
and
their
strengths
and
weaknesses;
o. The
geographical
stronghold
and
distribution
list
p. A
list
of
staff
with
job
functions
and
salaries/wages
(no
names);
q. A
redundancy
list
with
estimated
costs;
r. A
synopsis
of
your
sales
strategy
before
and
after
sale;
s. General
internal
records
and
management
reports;
t. Prepare
a
business
plan
or
budget
for
the
prospective
year(s),
with
budgets;
u. Working
capital
requirements
after
sale;
v. Prepare
an
organization
chart
showing
functional
areas
of
responsibility;
w. Include
a
description
of
capacity
in
your
production
departments
/silo’s;
x. Document
the
product/process
flow;
y. Promotional
materials,
product
samples
and
examples
of
marketing
collateral;
z. Industry
information
from
trade
associations
or
independent
research;
aa. A
list
of
general
‘housekeeping’
policies
and
procedures;
bb. A
preliminary
valuation
analysis
to
determine
and
justify
the
asking
price;
cc. Justification
on
the
underlying
level
of
sustainable
profits;
dd. A
summary
of
reasons
why
you
want
to
sell;
ee. SWOT
analysis;
ff. A
list
of
non-­‐negotiable
items
such
as
earn-­‐out
periods
and
autonomy;
gg. Key
management
exit
strategies
and
succession
plans
hh. A
non-­‐disclosure
agreement
to
continue
discussions.