Sell Your Business in Milpitas, CA

Make inventory and equipment easy to reconcile

For a manufacturing or distribution business, prepare an accurate asset list and distinguish saleable inventory from obsolete stock. Heavy inventory can use cash a buyer also needs for working capital.

Explain liens, equipment leases and ordinary maintenance spending. Depreciation is not a reason to assume machinery can run indefinitely without replacement.

Put repeat orders in context

Break out revenue and margin by customer over several years. A single major account can affect financing and payment structure even when the relationship has been stable.

Identify who maintains the accounts and how production knowledge transfers. Keep current monthly financial statements available as diligence progresses.

Bring a useful first set of information

For your Milpitas business, begin with annual sales, industry and how soon you hope to sell. Detailed tax returns and bank statements can wait for a secure process agreed with your advisor.

Start with current accounts, inventory aging and the equipment list. For a Milpitas company with production assets, explain the maintenance spending needed to sustain its reported earnings.

• List business debt and likely payoffs.
• Identify contracts, premises or approvals needed to continue trading.
• State how much training and support you are willing to provide.

Plan the filings separately from the price

Separate the transfer of operating assets from the later disposition of the seller company. Cash, receivables or a note may remain with the seller after the buyer starts operating.

Ask Milpitas about local registration changes and your CPA about California agency filings. A San Jose city account, if you hold one, has its own closure review.

Keep the sale moving

• Prepare the earnings review
• Review California sale filings
• Request a valuation for your business

Use the valuation form to outline your sale, or call (408) 555-0179.