Seller Preparation Checklist

Recent profit and loss statements

Include the periods that best show current and historical operations. Note any accounting changes, unusual items, or periods that need context.

Recent balance sheets

These can help a reviewer understand assets, liabilities, working capital, and equity. Ask your accountant which statements are appropriate to share.

Current-period financial snapshot

A current profit and loss statement, balance sheet, or internally maintained summary may provide context for recent operations when appropriate.

Business tax filings, if available

A reviewer may ask for tax filings to compare with financial statements. Share them only through an agreed process and seek tax advice before doing so.

Owner compensation and adjustment notes

List owner compensation and potentially discretionary or nonrecurring items separately. Whether an item is an eligible adjustment requires documentation and independent accounting review; this list does not by itself calculate SDE.

Accounts receivable summary

If relevant, summarize outstanding invoices, collection status, and unusual balances so a reviewer can understand receivables.

Accounts payable and vendor obligations

A summary may help explain current obligations, recurring commitments, and working-capital considerations.

Debt and liability summary

If the business has loans, leases, liens, or other obligations, gather the agreements and current information that your accountant or attorney recommends sharing.

Payroll and labor-cost records

A reviewer may ask for payroll totals, compensation structure, benefits, and contractor costs to understand operating expenses.

Customer and service records

A summary of customer types, service locations, service categories, frequency, and recent activity may be useful. Remove or limit identifying information until disclosure is appropriate.

Service agreements and contracts

Gather material agreements, renewal terms, assignment provisions, and informal arrangements where available. A contract does not by itself establish transferability or value.

Route and service-area summary

A generalized map or description of service areas may help explain scheduling, travel, disposal access, and geographic concentration without exposing customer identities.

Customer concentration summary

Summarize customer mix and concentration using information your advisor approves for sharing. A reviewer may request more detail later.

Revenue by service type

A breakdown of pumping, cleaning, repair, inspection, installation, or other services may help a reviewer understand the operating mix.

Recurring and one-time revenue context

Describe scheduled, contract-based, emergency, and one-time work where relevant. Include renewal and pricing context if it is available and appropriate to share.

Service and compliance records

For regulated services, gather permits, manifests, pump-out reports, customer reports, or other records that apply to your operations and jurisdiction.

Pending contracts and pipeline notes

Identify material proposals, signed agreements, renewals, or other pending work separately from completed revenue. Do not represent an opportunity as revenue before it is earned.

Operating procedures and systems

Note the systems and procedures used for dispatch, field service, billing, collections, safety, and customer communication. Written procedures are useful if they exist, but are not required to begin an inquiry.

Equipment and asset list

List material vehicles, trailers, pumps, tanks, cameras, tools, and other assets. Include identifying details only when appropriate for the stage of review.

Ownership and title records

Gather titles, registrations, lien information, and ownership records for assets that may be part of a transaction. Ask counsel how liens should be handled.

Maintenance and inspection records

Service logs, inspection records, repair history, and known condition issues may help a reviewer understand the fleet and equipment.

Vehicle registration and operating records

Keep registrations, inspection certificates, operating records, and known violations or notices available as relevant to the vehicles and jurisdiction.

Equipment financing and lease agreements

Gather material financing and lease agreements, balances, payoff terms, and assignment provisions when available. Transaction treatment requires negotiation and legal review.

Office and facility lease

If the business leases space, note the term, renewal options, assignment provisions, rent, and other material conditions that may affect operations.

Owned real estate information

If operating real estate is owned, gather ownership, title, financing, environmental, and use information. A sale, lease, or exclusion is a separate negotiated question.

Third-party equipment appraisal, if available

An appraisal may provide additional context about equipment, but it is optional and does not determine transaction value. Discuss whether one is appropriate with your advisor.

Employee and contractor overview

Summarize roles, tenure, employment status, compensation categories, benefits, and contractor relationships without sharing unnecessary personal information.

Roles important to daily operations

Identify functions that depend on particular people, including owner responsibilities, and note how knowledge, customer relationships, and duties are handled.

Licenses, certifications, and training

Note licenses, certifications, endorsements, and training relevant to the services offered. Confirm status and transfer requirements with the issuing authority.

Employment and restrictive agreements

Gather material employment, confidentiality, non-solicitation, or restrictive agreements if they exist. Have your attorney review enforceability and disclosure.

Benefits and retirement plans

Summarize benefits, accrued obligations, insurance arrangements, and retirement plans that may be relevant to operating costs or transition planning.

Workers' compensation and safety records

If applicable, gather policies, loss runs, claims information, safety programs, and notices that your advisor recommends sharing.

Subcontractor and vendor relationships

Describe material subcontractor, disposal, overflow, and specialty-service relationships, including whether terms are written, renewable, or informal.

State and local business licenses

List the licenses relevant to the business and note renewal dates, status, ownership, and any transfer or re-issuance requirements.

Trade, contractor, or waste-hauler licenses

For septic, wastewater, water treatment, or related services, gather applicable licenses and confirm transfer or re-issuance requirements with the relevant authority.

Disposal site agreements and permits

Gather agreements, permits, access terms, pricing terms, and renewal information for disposal, dewatering, rendering, or treatment facilities where relevant.

Water treatment and installation credentials

If applicable, note well, treatment, installation, drinking-water, or technician credentials and confirm any approval requirements for a change in ownership.

Transportation authority and safety records

If commercial vehicle rules apply, gather operating authority, inspection, safety, and incident records that your advisor recommends sharing.

Environmental compliance records

Keep permits, reports, spill-response records, audits, notices, and correspondence organized. Ask counsel how pending matters should be disclosed.

Insurance policies and claims information

Gather relevant policies, certificates, premiums, coverage limits, renewals, and claims information as appropriate for the business and review stage.

Litigation, claims, and notices

Identify material pending or resolved disputes, claims, notices, and settlements and ask your attorney how they should be disclosed.

Seller goals and context

Prepare a concise, accurate explanation of your goals and any relevant context. Share only what you are comfortable discussing.

Seller timing preferences

Note whether you are exploring options or have a preferred timing. Actual timing depends on records, diligence, negotiations, approvals, financing, legal work, and transition planning.

Transition assistance preferences

Consider whether you would discuss training, introductions, consulting, employment, or another handoff arrangement. Any role, duration, and compensation require negotiation and advice.

Seller's transaction preferences

You may have preferences about payment, financing, rollover, earnouts, or other terms. These are negotiation topics; obtain independent legal, tax, and financial advice.

Owner involvement in operations

Describe the functions you perform and the relationships you manage. This helps a reviewer understand possible handoff needs without assuming a value adjustment.

Customer and vendor relationship context

Note relationships that rely heavily on the owner, team, brand, or contract terms. A reviewer may ask how communications and service continuity could be handled.

Restrictive-covenant questions

A buyer may request restrictive covenants. Scope, duration, geography, consideration, and enforceability are legal questions for your own attorney.