Financial Considerations

When preparing to sell your distillery, ensuring financial clarity and proper documentation is critical for a smooth transaction and optimal valuation. By addressing key financial considerations beforehand, you can present a well-prepared and transparent financial profile, increasing buyer confidence, minimizing delays, and supporting a successful distillery sale.

Our financial experts will help you determine the important information to share and how to properly showcase the successes of your business through your financial documents. 

Income Tax Returns

Provide up-to-date and accurate income tax returns for the past three to five years. Prospective buyers and financial institutions will review these to assess profitability, revenue trends, and compliance with tax regulations. Ensure all amendments, adjustments, and extensions are clearly documented and reconciled with financial statements.

Sales Tax Returns

Ensure all sales tax returns are properly filed and current. Sales tax liabilities and filing accuracy can impact the sale process, as unresolved issues may create delays or reduce buyer confidence. Confirm the accuracy of reported sales and verify that all required state and local taxes have been remitted.

Payroll Filings

Verify that all payroll filings are complete and compliant with state and federal regulations. Buyers will want assurance that all employment-related tax obligations have been met to avoid inheriting financial risks. This includes proper reporting of employee classifications, tax withholdings, and timely submission of required forms.

Investor Correspondence

Maintain organized records of all communications with investors, including equity agreements, profit-sharing arrangements, and voting rights. Clear documentation helps buyers understand existing stakeholder relationships and obligations. Create copies of shareholder meeting minutes, investment agreements, and records of capital contributions.

Bank Correspondence/Assistance

Ensure all bank correspondence, such as loan agreements, credit lines, and financing arrangements, are documented and current. Be prepared to assist buyers in their due diligence by providing clear records of financial standing and obligations. Highlight any ongoing financial commitments and verify that all debt obligations are clearly detailed with terms and conditions.