Business Broker Closing Checklist: The 40 Things You Need to Remember To Close a Deal

Due Diligence

Review financial statements

Verify inventory and assets

Check legal and regulatory compliance

Assess customer contracts and relationships

Evaluate leases and real estate agreements

Purchase Agreement

Confirm terms and conditions

Ensure all parties sign the agreement

Address any contingencies or conditions

Legal and Financial Considerations

Engage legal counsel for advice and documentation

Coordinate with accountants and tax advisors

Prepare necessary legal documents (e.g., transfer of ownership, non-compete agreements)

Seller Documentation

Collect necessary financial records

Gather corporate documents (e.g., articles of incorporation, bylaws)

Obtain necessary licenses and permits

Share copies of contracts and agreements

Buyer Documentation

Secure financing documents

Provide personal financial statements

Share professional background and references

Submit a business plan or proposal

Closing Documents

Prepare closing statements

Draft bill of sale or assignment of assets

Execute all required legal forms and contracts

Obtain necessary consents and approvals

Escrow and Funds

Establish escrow account for deposit and purchase funds

Coordinate with attorneys and banks for fund transfers

Verify proper allocation of funds (purchase price, debts, etc.)

Taxes and Liabilities

Address potential tax implications

Determine responsibility for outstanding liabilities

Ensure compliance with tax regulations and filings

Transition Plan

Communicate transition plan to employees, customers, and suppliers

Address key personnel and management changes

Establish timelines for handover of key responsibilities

Post-Closing Obligations

Ensure compliance with any post-closing obligations (e.g., training, warranties)

Facilitate smooth transfer of licenses, permits, and contracts

Address any post-closing disputes or contingencies

Finalize and Celebrate

Conduct final walkthrough of the business premises

Confirm all closing requirements have been satisfied

Celebrate the successful deal closure

Note: This checklist is not exhaustive and may vary depending on the specific circumstances and requirements of each business sale. It is recommended to consult legal and financial professionals for tailored advice.