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When outfitting businesses for sale there are certain things that must be done and this is true for businesses whether they are large or small. There are a lot of businesses that go up for sale everyday and so potential buyers can be very selective. This makes it very competitive so sellers must have everything lined up properly to attract the buyers.
One of the things that is always needed when outfitting businesses for sale is an up to date Profit and Loss statement. Potential buyers want to see that the business they are looking at is either making money or at least has the potential to make money. Therefore, the P&L is critical, as is a valid listing of the assets owned by the business and the debts that are owed. No buyer wants to get a business that is heavily in debt particularly if the existing assets don’t cover the debt. They may also be reluctant to purchase a business where the assets such as real estate and inventory are heavily mortgaged.
Another thing needed when outfitting businesses for sale is up to date client or customer lists. People usually don’t want to buy a business that requires them to start from scratch. They want a business that already has some established customers or clients that they can build on. The better the existing customer base, the more likely the business will sell. It is also necessary to provide a complete inventory list when there are goods being sold by the business.
The outfitting of businesses for sale that have a large existing inventory makes them much more attractive to buyers. If all of this is put together with a good asking price the prospects of the business being sold are usually very good.