Exit Planning Checklist for Business Owners

This checklist outlines the key documents, information, and preparations necessary for our due diligence process. By preparing these items in advance, you can help ensure a smoother transaction process with fewer surprises.

1. Financial Documentation

• Last 3-5 years of financial statements (balance sheets, income statements, cash flow statements)
• Year-to-date financials compared to previous years
• Last 3-5 years of business tax returns
• Schedule of all business debt and liabilities
• List of accounts receivable with aging report
• Inventory list with valuation method explained
• Fixed asset schedule with depreciation information
• Any audited or reviewed financial statements (if available)

• Customer concentration analysis (% of revenue from top customers)
• Sales records by product/service line
• Sales records by customer type/segment
• Monthly sales trends for past 3 years
• Pricing strategies and recent price changes
• List of recurring revenue contracts and terms

• Breakdown of all owner compensation and benefits
• List of any personal expenses run through the business
• Details of any related-party transactions or leases
• Explanations for any unusual or one-time expenses

2. Operational Information

• Corporate formation documents (articles, bylaws, operating agreements)
• Minutes from board/shareholder meetings
• Current ownership structure and history
• Copies of all business licenses and permits
• Proof of regulatory compliance for your industry
• Insurance policies and claims history

• Organization chart with names, positions, and tenure
• Compensation details for all employees
• Employee handbook and policies
• Benefits summary and associated costs
• Employment contracts for key staff
• Documentation of any workforce issues or ongoing disputes
• Staff turnover rates for past 3 years

3. Technology & Intellectual Property

• List of all trademarks, patents, copyrights (registered and unregistered)
• Domain names and website ownership documentation
• Software licenses and subscription agreements
• Trade secrets and proprietary processes

4. What to Expect from Short Inc.'s Process

1. Initial Review: After signing an NDA, we'll review preliminary information to prepare an initial valuation range.
2. Detailed Due Diligence: If both parties wish to proceed, we'll conduct thorough due diligence using the information requested in this checklist.
3. Deal Structure Discussion: We'll work with you to develop a transaction structure that addresses your financial, tax, and personal goals.
4. Definitive Agreement: Our attorneys will draft purchase agreements reflecting our mutual understanding.
5. Closing Process: Typically takes 30-90 days from signing of definitive agreements.
6. Transition Period: We'll work closely with you during the agreed-upon transition period to ensure continuity for employees and customers.

For a confidential discussion about your business and how this process would work specifically for you, please contact us directly.

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