A diligent buyer, once they have decided whether they have a serious interest in your business, will seek to substantiate and confirm every phase of your business through a thorough examination known in the industry as due diligence. This may include a review of your marketing and operations -- product lines and services mix, management structure, customer and market base, and compatibility of operations. They will want to know how your company or business is classified -- manufacturer, retail store, wholesale distributor, service company, etc. They will review your financial condition including financial statements, tax returns, depreciation schedules, payroll records, etc. They will want to see your company's earnings (profit before taxes) for the past three to five years, as well as your net worth. They will review the assets of your business -- facilities, equipment/vehicles, inventories and leasehold improvements. And they will examine your legal status -- pending or potential litigation, title or lien searches, and lease agreements. They will want to know about employment contracts. If they are buying your stock, they will want to review your corporate minutes and corporate paperwork. If necessary for the business, they will want to know about your patents, licenses, permits and franchise agreements. That’s why having professional help in preparing for the sale of the business is so important in dramatically increasing the likelihood of surviving due diligence, closing the transaction, and getting the most value the market will support.