Jeff Johnson, Murphy Business Broker – What Happens When A Business Owner Wants To Sell A Business?

Deciding to sell a business is just as much of a big decision as buying a business. It requires careful planning, which is why hiring experts who are trained in the sale of businesses and are familiar with the nuances of selling a business will prove to be an invaluable asset. As a result, you will be able to focus your energy on running your business to maintain its standard throughout the selling process.

When it comes to selling your business, there’s no doubt a lot of thought was put into making that decision. In our experience, the reasons for such a change often surrounds one of the following:

Retirement – sometimes it’s time to put the world of work behind you and focus on enjoying the harvest of your hard work.

Divorce – It’s not unusual for couples to go into business together but unfortunately sometimes a happy ending means parting ways.

Separation – from a business partner.

Change of interest – Sometimes life takes a different direction and new areas of interest are discovered.

For Jeff Johnson and his associates at Elite Carolina Brokers, most clients who are ready to sell their business usually always reach out first to request a business valuation. Typically a broker’s opinion of value is given after reviewing the company’s financial documentation from at least the last three years. We’ll give you an in-depth look at our business valuation processes in our upcoming newsletters, so stay tuned!

Confidential Offering Memorandum

The next step would be the marketing process. To get this kickstarted a confidential offering memorandum is created. A confidential offering memorandum is a legal document that states every relevant piece of information about the business being sold. Information such as products and services, financial information, market, competitors, etc. This is really helpful to potential buyers. A teaser of this memorandum is broadcasted across various websites in the hope of catching the eye of a potential buyer. However, our marketing reach does not stop there, we also keep a database of buyers handy so when a business comes up for sale, we reach out to let them know there’s a business available that they might be interested in. It’s imperative to note that the confidential offering memorandum is not given to anyone unless they sign a non-disclosure agreement. This ensures that information about the sale is not shared with anyone who is not directly involved in buying the business, legal action can be taken if this is violated.

Once a potential buyer has been sourced, we then help with the negotiation of a sale price between the seller and buyer. Working with well-connected business brokers like Jeff and the other members of our team definitely has its advantages. We have affiliates locally and nationwide with SBA lenders, that help us prequalify not only the business but also the buyers. Prequalifying the buyers ensures that the buyer and seller are a great match financially, this decreases the chance of any hiccups further down the line.

Tax Consultancy before closing

Additionally, our dedication to assisting our sellers to achieve the best possible outcome and peace of mind after selling their business, knows no limits. With the help of associate and tax consultant, Monte Walker, we are able to provide our clients (sellers) with their taxable income. This is an advantage because the seller will have knowledge of their possible tax liabilities before they settle. This eliminates future regret. With regard to the buyer, we like to ensure that they do their due diligence, so usually, a letter of intent or sales agreement is provided. This is inclusive of employee information, pictures of the business and the option to take a virtual tour of the business for sale in our password protected environment; the buyer would be able to view the premises at any time that suits their convenience. On top of offering unique services to our clients, we are also very results-driven.

Nationally, Murphy business brokers currently have $164 million in engagements, year to date and we’ve sold $36 million year to date. Locally, in 2018, Jeff and our team has represented 14 business industries in our soul transactions and in the same year, we’ve represented 18 business valuations.

Now that you’ve been privy to our personalized and one-of-a-kind procedures, we encourage you to reach out to let Jeff and his team at Elite Carolina Brokers do the work for you. Our service, dedication and drive is your guarantee that if you are prepared to sell your business, we are ready to sell it for you. Give us a call at (919) 719-2717 if you’re ready to take your final step as a business owner.