What documents are necessary for the due diligence?

The documents required by the seller :

1. Financial documents including the last three years of:
   • Profit and loss statements
   • Balance sheets
   • Tax returns
   • If applicable state sales tax returns and payroll tax records
2. An agreement for confidentiality
3. A Confidential report on the business
4. A business disclosure statement
5. A document of the resolutions to sell
6. A list of vendors

Documents required by the Buyer:

1. Financial documents showing:
   • The buyer is in a financial position to buy the business or to make the down payment
   • The buyers credit standing for getting a loan if applicable
2. Signed copy of the Confidentiality Agreement
3. Resume of skills if required
4. Disclosure statement of the buyer