I run a small Shopify store selling pet accessories, about $300k/year revenue. Got a potential buyer and they're asking for due diligence materials. I've never sold a business before. At my size, what files should I actually have ready? I don't want to overdo it but also don't want to look clueless.
E-commerce
What files do online business buyers ask for during due diligence?
At $300k revenue the buyer will probably want: 3 years of P&L, tax returns, Shopify analytics export, bank statements, supplier contracts, and a list of your top SKUs. Maybe an inventory report if you hold stock.
Honestly if they're serious they'll ask for everything. Bank statements are the big one. Make sure you have 12-24 months ready.
lol 'die with the secrets' is not a due diligence strategy. Give them the docs.
That's helpful. Do people usually share their Shopify collaborator access? Seems risky to just hand over admin.
Yeah, for smaller deals buyers often ask for collaborator access (read-only). You can limit permissions. i wouldn't give full admin until there's a signed LOI.
Don't forget the boring stuff: business registration docs, EIN letter, any trademarks and a list of recurring expenses. I bought a content site last year and the seller didn't have a simple expense list. Turned a 2-week close into 6 weeks.
This. It's always the boring stuff that drags things out.
Also if you have any email/SMS lists, buyers want subscriber counts and opt-in proof.
Wait, people actually ask for source code? For a pet accessories store? That seems overkill.
Usually just theme files and any custom apps, not full code. But yeah, if the store depends on some custom functionality they'll want to see it.
I've been through two acquisitions, and the biggest pain point is always ad account access (Facebook/Google). Buyers want historical performance data. Make sure you you own the ad accounts under your business email, not a contractor's.
Thanks everyone. Looks like I have some organizig to do. I'll start with the financials and access stuff.