What’s Your Exit Strategy?
April 30, 2019
Thinking about selling your title company? Here’s a checklist of items you’ll want to gather to help the process.
- Confidentiality agreement
- Five years of financials—profit and loss statements, balance sheet, tax returns
- List of expenses that are discretionary (i.e.: spouse’s car, club dues, children on payroll)
- List of current bank accounts, both escrow and operating
- Current escrow account reconciliations
- Audit reports from underwriter and from third parties, if any
- Copies of insurance policies and declaration pages for current insurance.
- Software
- Equipment inventory
- Office furniture inventory
- Customer lists
- Average number of orders per month/year
- Average number of closings per month/year
- Average premium charged
- Cancellation rate
- Residential %
- Commercial %
- Breakout of the above information for each of your top five customers
- Detailed employee list
- Name of employee
- Duties of employee
- Years of employment
- Employment contract in place
- Salary range
- Licensee
- Bonus/incentive
- Vacation/sick time
- List of contracts
- Underwriter(s)
- Equipment leases
- Vehicle leases
- Building leases
- Search/plant access leases
- Memberships—for example: country clubs, athletic clubs, etc.
- Software maintenance agreements
- Joint venture or affiliated agency agreements
- Claims reports from underwriter
Contact ALTA at 202-296-3671 or communications@alta.org.