For most business owners, selling a business will be the single largest transactional event that you'll experience. When it comes time to move away from something that has consumed your everyday life for 10, 15, even 20+ years, there's an emotional attachment that can be extremely difficult to set aside. Business is incredibly personal when it involves YOUR business. When you factor in the unpredictable nature of the selling process it can make the idea of selling your business appear daunting.

Selling your business with Sunbelt Franchise Re-Sales (SFR) and Sunbelt Business Brokers removes much of the uncertainty and stresses that are associated with the selling process. Much of these feelings from business owners often stem from simply being unaware of the steps involved in selling a business. Before engaging in the market, it's highly beneficial for business owners to educate themselves on the selling process and what to expect along the way. Below, we've outlined our selling process to help prepare business owners for their potential exit and demonstrate the areas in which we will provide tremendous value to your sale!

Following an initial conversation, a local office will request to see financial documents to help pinpoint the true value of your business. Before you make any obligation, they will work with you to ‘recast’ your financials, determine Sellers Discretionary Earnings (SDE) and provide you with an opinion of value for your business. Be prepared to share business tax returns, profit and loss statements and balance sheets for the last three years. These reports and subsequent analysis will help them to provide you with an approximate price range of what they believe your business could sell for on the open market. 

While some Sunbelt offices do charge for value estimations, Sunbelt Franchise Re-Sales offers a Complimentary Value Range Analysis services for business owners. If you are interested in a quick price estimate, feel free to click the icon below and inquire! We'll respond and provide you with a link to our secure DropBox Folder for you to submit your business financial documents.

Once you are comfortable with the established value range and have decided on a ‘go to market’ asking price, you will be presented with a listing agreement allowing the local office to exclusively advertise the business for sale and work with buyers on your behalf. The typical listing agreement includes a 12 month term contract (can be negotiable).

After signing your listing agreement, the local office will move forward with developing your confidential business profile. This document will include information pertaining to every aspect of your business (i.e., asking price, financial performance, background/history, geography, industry, competition, etc.) and will help prospective buyers, who have signed a non-disclosure agreement,  gain a more comprehensive understanding of your business.

Once you sign off on the business profile, the local office will move forward with the actual marketing of your business for sale. The Sunbelt marketing process involves placing CONFIDENTIAL advertisements on several premier business-for-sale websites available (including the proprietary Sunbelt Network site) to ensure maximum visibility for your business. Additionally, each local office has what we refer to as "Pocket Buyers" - qualified buyers who have inquired in the past regarding other opportunities and are still seeking the right opportunity. They will send a marketing blast to those individuals as well to see if a potential match exists. The more buyers that they're able to attract for your business, the better price and terms for you!

Once the marketing of your business begins, the local office will be responsible for fielding all interest pertaining to your listing. As prospective buyers submit inquiries to learn more about your business, you can rest assured that confidentiality will remain our highest priority. As the owner, it's important to recognize that listing your business for sale isn't the finish line! Selling a business is a marathon; not a sprint. The average business sales process (from listing to close date) is 7-9 months. That's more than enough time for the performance of the business to change (for better or worse.). Taking your foot off the gas now could hurt your asking price OR potentially kill a deal altogether. It's critical that you continue to push your business forward while the remaining steps play out:

Buyer Management

Non-Disclosure Agreements are standard procedure and will be required for buyers to sign and return before receiving any information. Additionally, as part of the screening process, buyers will be required to complete a Buyer Questionnaire to confirm their interest and qualifications. If a prospective buyer is proven qualified and revealed to be an ideal fit, the local office will work with them to schedule a showing and ultimately transition their interest into an offer.

Offer / Counter Offer / Due Diligence

After an offer is accepted, the local office will work with the buyer to facilitate their required due diligence and to negotiate the letter of intent, counter-offer, and asset/stock purchase agreement. 

Franchise Disclosure & Discovery

Upon acceptance of an offer, the local office will quickly introduce the buyer to your Franchisor in order to start the franchise disclosure, discovery and qualification process. Every Franchisor has their own resales process, protocols and deadlines. Sunbelt is partnered with over 100 national brands and will incorporate those protocols into their selling process making it easier for you, the buyer and your Franchisor. This removes many of the potential pitfalls that can delay (or even kill) a deal.

Financing

Your buyer will almost always require some form of financing to fund the transaction. While there are many financing options available for a buyer (i.e., conventional loan, SBA loan, asset loan, seller financing, and more), the most common business loan by far is the 7(a) Business Acquisition Loan through the Small Business Administration (SBA). The SBA lending process is long (60-90 days or more) and can be tremendously stringent. Most local Sunbelt offices have relationships with qualified lenders to help facilitate resale transactions.

Closing

The closing process is different depending on your state. The Sunbelt office will recommend a closing attorney. The closing will be facilitated by either a title & escrow company, the buyer or sellers’ attorney, or a third-party attorney that represents the ‘transaction’.