Typical Document Request for Small Business Valuation
Note: some items may not be relevant
- Contact information for company management and/or broker.
- Federal income tax returns for the business for the past three years with supporting schedules. CPA prepared financial statements are also helpful if available.
- Most recent Year-To-Date or Fiscal-Year-End internal balance sheet and income statement with a comparison to the same period prior year (or a copy of the prior year statements) if available. An accrual accounting based balance sheet is preferred for this item when working capital items are present (receivables, prepaid assets, payables, and accrued liabilities).
- Copy of the purchase agreement (or letter of intent) if the valuation is for transaction purposes.
- Copy of any shareholder buy-sell agreement if the valuation is for a partial interest or for buy-sell agreement reasons.
- For SBA banking/lending clients: Copy of portion of credit memo/presentation that discusses the nature and history of the business (if applicable) and/or a copy of a business broker’s marketing memorandum for the company (if applicable). Note: parts of a credit memo with personal credit history are not needed.
- Any budgets or forecasts for the upcoming year or beyond.
- Schedule of fixed assets to be included in the transaction with estimated values (if applicable) or recent fixed asset depreciation schedule (disregard if the list is already included in the tax returns).
- If there are any customer concentrations (e.g. over 10% of annual sales), please provide annual sales for the top customers over 10% of sales for the past three years.
- Accounts receivable and accounts payable aging schedules (if applicable).
- Schedule of owner/officer compensation for the past three years (unless already listed on the tax returns).
- Copy of business facility lease or summarized terms of the lease.
- Recent schedule of ownership (shares/units or percentage by owner) if different from the most recent tax return.
- If a franchisee business, a copy of the franchise agreement or basic terms of franchise costs/benefits.
- Summarized terms, or copies, of any market transaction in company ownership in the past three years.