Sunbelt Business Brokers 11/14/23 Sunbelt Business Brokers 11/14/23

How Beneficial Are Business Brokers for Selling My Sole Proprietor Business

Building a business from the ground up as a sole proprietor can be incredibly challenging. But if you’ve done the work, you might decide that it’s time to sell and move on to your next business venture.

You likely already know that business brokers are essential when it comes to selling larger businesses. But what about sole proprietorships? Here’s a look at how business brokers can make a major difference in the sale process.

They Know How to Find Buyers

Business brokers maintain a network of buyers who are eager to purchase businesses. When it comes time to sell yours, your broker will connect you with enthusiastic potential buyers.

What if you already have a buyer in mind? You’ll still benefit from working with a broker because they help with more than just finding buyers.

They’re Expert Negotiators

Since you’ve worked so hard to build up your sole proprietorship, handling the negotiations yourself isn’t a great idea.

Negotiating a sale price for a business isn’t like haggling at a flea market. Business brokers sell businesses day in and day out, so they’re well-versed in the difficult art of negotiation. They’re also familiar with changing trends in your industry, so they will be able to tell you whether an offer is worth taking.

They Can Help You Minimize Tax Liability

Most business owners sell with the goal of getting as much profit from the sale as possible. However, the more profit a sale generates, the more you’ll owe in capital gains tax.

The way a sale is structured can make a dramatic difference in the amount of tax you owe, and business brokers can help you design a deal structure that keeps your tax liability as low as possible.

Tax code is difficult for most people to understand, and the fact that it’s constantly changing doesn’t make it any easier. Brokers keep track of changes in tax code and can use that knowledge to execute successful sales.

They Save You Time

If you’re going through the process of selling your business while you’re also running it, you may have already found that it’s a challenge to manage both. This is particularly true during the due diligence process, where the buyer can request many types of documentation:

Bank statements from the past 3 to 5 years
Tax returns from the past 3 to 5 years
Financial statements from the past 3 to 5 years
Any relevant leases or contracts
Insurance policies
Employee handbooks and official protocols

Business brokers can help you find and compile this information ahead of the due diligence process. You can trust them to handle the logistics of the sale so you can dedicate your time to your business.

Are Business Brokers Right for You?

Selling your sole proprietor business is a major event, and it’s something you need to plan with caution. When you work with a business broker, you have a professional on your side to take charge of finding a suitable buyer, getting a fair sale price, minimizing your tax liability, and ultimately, saving you time.

Sunbelt Business Brokers 11/3/23 Sunbelt Business Brokers 11/3/23

Top 4 Ways a Business Broker Benefits the Sale of a Business

You may have had friends or business contacts recommend that you use a business broker when selling your business. But few people know just what a broker can do unless they have direct experience with the profession. Here’s a look at some of the main ways a business broker can make things easier for you during the sales process.

1. You’ll Get a Quicker Sale

Most brokers maintain a list of active buyers looking to purchase a business as soon as possible. They also typically have contacts at banks, so if a buyer is ready to commit, the broker can likely help them secure financing.

As a result, when you work with a business broker, you’ll likely be able to make a sale much faster than if you were to go it alone.

2. You’ll Have a Guide Through the Process

From negotiating a deal structure to choosing the right attorney to assist with closing, completing a sale has many more steps than you might think.

You may be new to the ins and outs of selling a business, but it’s something business brokers deal with every day. A good broker will help you through the process and make sure you don’t miss any crucial steps.

3. You’ll (Probably) Get a Better Price

Because business brokers are often in contact with numerous would-be buyers, they can help you find and choose a buyer quickly. Having such an extensive selection of contacts also means they can usually get a better price for your business.

How? Business brokers almost always have multiple buyers interested in a single business, and they use that fact as leverage when communicating with potential buyers. While it’s not an auction per se, the buyers will often try to outbid one another for your business.

By contrast, it can be challenging to find just one interested, qualified buyer when selling your business on your own, let alone several.

4. You’ll Save Time

Many people who sell a business for the first time are surprised at how long it takes. Between marketing, meeting with potential buyers, negotiating deals, and moving through the closing process, selling your business leaves little time for anything else.

If you’re deeply involved in running your business, you may find it impossible to keep up with your typical duties while attempting to orchestrate a sale. Even if you aren’t involved in day-to-day operations, handling a sale yourself can be a massive investment of time and energy.

You still need to be somewhat involved in the process when you work with a broker. However, they can handle the responsibilities of marketing and interacting with buyers for you, leaving you free to run your business or pursue other interests.

The Right Broker Makes All the Difference

Selling a business is a complicated process, but skilled business brokers can help you navigate it. Of course, selling on your own is always an option. More often than not, however, working with a broker pays off — both financially and otherwise.

Sunbelt Business Brokers 11/1/23 Sunbelt Business Brokers 11/1/23

Is It Worth Contracting a Business Broker When I Sell My Company?

Selling your business is an exciting time, as it likely means you’re retiring or moving onto a new venture. All too often, though, making a sale is harder than it sounds.

Some business owners are determined to stick it out and make the sale alone. Others call in business brokers.

If you’re like many business owners who are preparing to sell, you might find yourself wondering whether contracting a business broker is worth the trouble. Here are a few questions to ask yourself as you make this key decision.

Do I Have a Buyer in Mind?

Many business owners who sell independently do so because they already have an interested buyer lined up. If you plan on selling your business to an employee or existing contact, you may not need to hire a broker — you can simply work out the details with your buyer and make it official.

On the other hand, if you’re ready to sell but don’t have a prospective buyer, a broker can be a tremendous help. Brokers maintain networks of eager, qualified buyers. And because your broker is invested in getting you the best sale price possible, they can encourage interested parties to bid against one another.

Do I Have the Time to Coordinate the Sale?

Selling a business isn’t like selling a car. It’s a sustained effort with endless loose ends to tie up.If you’re an owner-operator or are otherwise deeply involved in the day-to-day operations of your business, you’ll likely find it overwhelming to add managing and coordinating a sale to the mix. However, if the role you play is relatively hands-off, you might be able to find the time.

Am I Familiar With the Sales Process?

One of the primary advantages business brokers offer is that they know exactly what steps must be taken to make a successful sale. A good broker will be able to ensure that you get an accurate valuation and help you negotiate a deal with the buyer you choose. They’ll also be able to guide you through the closing process.

In all the intricacies of the sale itself, it’s easy to forget about another important element: taxes. If you’ve never sold a business before, you may find it challenging to fully grasp the resulting tax consequences.

Taxes aren’t an area where you want to make a mistake, either. If you don’t file all necessary paperwork with the IRS or pay the appropriate amount, you could be charged with tax fraud. A good broker will help you handle all taxes associated with selling your business.

Take Time to Consider Whether a Business Broker Is Right for You

In nearly every situation, a business broker can facilitate a faster sale (and get you a better price) than if you sold your business on your own. That being said, not all business brokers are created equal.

Before committing to one, make sure you do your due diligence. When you take the time to find the right broker, they’ll be able to find you the right buyer in turn.

Sunbelt Business Brokers 5/29/19 Sunbelt Business Brokers 5/29/19

South of Houston Street

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Habitasse platea dictumst quisque sagittis. Quisque id diam vel quam elementum pulvinar etiam non.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Habitasse platea dictumst quisque sagittis.

Quisque id diam vel quam elementum pulvinar etiam non. Accumsan sit amet nulla facilisi morbi tempus iaculis urna id. Pharetra sit amet aliquam id diam. Vitae aliquet nec ullamcorper sit amet risus nullam eget felis. Blandit turpis cursus in hac habitasse platea. Auctor eu augue ut lectus. Mauris in aliquam sem fringilla ut morbi. Tellus orci ac auctor augue mauris augue neque gravida. Amet mauris commodo quis imperdiet massa. Porta non pulvinar neque laoreet suspendisse interdum consectetur libero. Ultricies integer quis auctor elit sed vulputate mi sit. Placerat in egestas erat imperdiet. Fermentum leo vel orci porta. Sed sed risus pretium quam vulputate.

Vitae nunc sed velit dignissim sodales ut eu sem. Nullam eget felis eget nunc lobortis. Nibh sit amet commodo nulla. Rhoncus urna neque viverra justo nec. Parturient montes nascetur ridiculus mus. Integer eget aliquet nibh praesent tristique magna. Sem nulla pharetra diam sit amet nisl suscipit adipiscing bibendum. Commodo viverra maecenas accumsan lacus vel. In fermentum et sollicitudin ac orci phasellus egestas tellus rutrum. Ullamcorper dignissim cras tincidunt lobortis feugiat vivamus at augue. Quis varius quam quisque id diam vel quam elementum. Volutpat lacus laoreet non curabitur gravida arcu ac tortor. Pellentesque id nibh tortor id aliquet lectus proin nibh. Turpis massa sed elementum tempus egestas sed sed risus. Augue ut lectus arcu bibendum at varius vel.

Massa tempor nec feugiat nisl pretium fusce id. Pellentesque dignissim enim sit amet. Mattis ullamcorper velit sed ullamcorper morbi tincidunt ornare massa. Ultricies leo integer malesuada nunc vel risus. Consequat ac felis donec et odio pellentesque. Urna condimentum mattis pellentesque id nibh tortor id. Condimentum mattis pellentesque id nibh tortor id aliquet. Quis varius quam quisque id diam vel quam elementum pulvinar. Mauris ultrices eros in cursus turpis. Feugiat nibh sed pulvinar proin. Venenatis a condimentum vitae sapien. Ut faucibus pulvinar elementum integer enim neque volutpat. Facilisis leo vel fringilla est ullamcorper eget nulla facilisi. Diam volutpat commodo sed egestas egestas fringilla phasellus faucibus. Et netus et malesuada fames. Aenean sed adipiscing diam donec adipiscing tristique risus nec feugiat. Faucibus pulvinar elementum integer enim neque volutpat ac. Diam vulputate ut pharetra sit.