Start preparing for M&A on Day 1

It may seem odd, but as soon as you start up a business, you should begin preparing the documentation needed to sell or merge with another enterprise. It may be years down the road but the records often required in today’s M&A environment can be overwhelming. If your recordkeeping has been shoddy, it can be difficult or impossible to compile the information wanted by a potential buyer or partner.

You don’t want to forgo opportunities just because you didn’t have the necessary paperwork in order.

So what kind of information will you be asked for in the due diligence process? Here’s a list of some common items:

Preparing your business for a future merger or acquisition starts the day you open your doors.

As you can see, the information that may be requested in M&A transactions can be quite detailed. Potential buyers and partners want full disclosure about operations so there are no surprises. Compile and update documentation so you are as prepared as possible.

This checklist only contains some of the items you may be asked to produce. The exact information depends on the business, the potential buyer and the industry involved. If you have questions about how to prepare for a sale or merger, consult with your attorney and the professionals at Sol Schwartz & Associates.

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