The Seller’s Pre-Closing Checklist

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The Seller’s Pre-Closing Checklist

Vincent Murphy Business Broker
Vincent Murphy Business Broker

 

If you are selling a business there are numerous things you can do to prepare for a business deal. We have compiled a brief checklist in order to assist those selling a business. This is just a brief guideline only, and some of these items may not be applicable to your business transaction. If in doubt, consult your business broker, lawyer, accountant, wealth adviser or other professional.

Do ASAP:

  • Request a Certificate of Good Standing and Corporate Tax Lien Waiver (if applicable).
  • Have Accountant request a Certificate of Good Standing (Secretary of State’s Office).
  • Sell off inventory at profit to reduce to an agreed amount.
  • Remove all personal belongings.

Corporate Financial:

  • List accounts receivable, give a copy to the buyer.
  • Check for return of all deposits (utilities, landlord, leased equipment, etc.).
  • Prepare most recent, or highest recent cost, invoices for inventory count at closing
  • Notate your calendar for receipt of annual insurance certificates and rent increase dates.

Utilities:

  • Notify all vendors, suppliers, and contracts, etc. (Alarm, Trash, etc.) Introduce Buyer to all vendors, suppliers, and salespeople and help the buyer get credit applications from all suppliers.
  • Notify utility companies to make final readings. Close your accounts as of the closing date. (Electric, gas, propane, alarm, trash, etc.)
  • Arrange with the phone company to transfer telephone number to the buyer.
  • Prepare for changing of keys and alarm codes.

Corporate:

  • Change corporate address at Post Office.
  • Change corporate address with Secretary of State.
  • Have accountant file final payroll and debt returns for the corporation.
  • File UCC financing statements at City/Town Hall, Statehouse, and Registry of Deeds (if applicable).
  • File statement of abandonment of the use of fictitious (d/b/a) name with City/Town Clerk.

Insurance Needs:

  • Make arrangements for personal insurance to be paid by the business.
  • Notify insurance carriers of change of ownership. Cancel insurance and arrange for rebate if you have pre-paid.
  • When you work with George and Company, we will carefully guide you through the rigorous process of selling a business. Through our business valuation and consulting services, you can be assured that your business will sell to the best buyer who offers the best price.

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