Once you’ve decided to be acquired by a larger corporation, you may need to provide a comprehensive package of documentation. An acquirer might ask for the following types of information before the transaction.
1. Official Documents and Status Information: The first thing you should collect is documents that demonstrate the history of the company and its status. This may include your incorporating documents or bylaws and any modifications. You may need to include any information regarding the status of your company and its ability to do business in your state.
2. Financial History: The financial history of your company is the next type of documentation that is usually requested in an acquisition. This may involve any audited statements, credit reports, budgets or financial projection plans. You should also include copies of all accounts not yet paid.
3. Property and Assets: When your company is changing hands, the next thing that is important to know is what assets are owned. List all property, including any major capital equipment, that is either leased or owned by your organization.
4. Legal Proceedings: The legal history of your organization is important information that is needed by your acquirer. You need to show any documentation pertaining to legal proceedings, settlements, judgments or litigation that your business is involved with.
5. Regulatory Information: Your business’s regulatory information is needed so that the acquiring company can get a better picture of all of the factors that may affect success. This type of information may include licenses, permits, forms, correspondence, audits or any other type of paperwork related to local or federal government statutes that apply to your business.
6. Personnel Information: The people involved in your firm are vital when going through a major change like acquisition. The documents that you may need to supply could be employee resumes, salary schedules and benefits contracts. Any agreements or contracts made with employees are important and should be noted. If your business ever went through employment issues litigation, that history should be divulged. Additionally, an organization may want to have any type of workers’ compensation, unemployment insurance and stock option material ready for review.
7. Agreements and Contracts: Contracts and agreements that were made between your business and other entities should be part of the documentation package that you present to your new business-partnering firm. These may include financial contracts, agreements with specific employees, partnerships with other organizations, obligatory documents signed with suppliers and pacts made with clients.
8. Tax History: Your business’s former tax filings and returns from the previous three years should be provided. Sales tax documents are needed as well. If you’ve been audited in the past, your acquiring company could expect to see paperwork regarding the investigation. Additionally, you should include tax data such as excise tax, employment tax, liens or settlement agreements made.
9. Inventory, Products and Other Offerings: A well-organized packet of information should have all pertinent products, inventory and other offerings as part of it. Catalogs and other product listings that customers see should be provided. Next, any official list of current inventory is expected to come from you. Product research history and development news can be a helpful tool for your new venture contacts.
10. Customer Documentation: To promote the success of your new partnership, your business should deliver information regarding your customers. This may include customer databases, correspondence and orders that are in the process of being filled.
11. Marketing Materials: Finally, any promotional or marketing materials should be supplied to your new associates. Any advertising, corporate communication or outside memos for promotions can be helpful in painting a picture of your organization.
When your business transitions from a small organization to a part of a larger group, it’s important to ensure that it go smoothly. Paying attention to your due diligence by offering the proper documentation that details the operations and history of your company can make this process easier.
The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.