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Planning your exit strategy from a Nashville, TN business with $1M-$40M in revenue? As an owner-led entrepreneur looking to sell your business, you need more than just business valuation.
Consider protecting your legacy, finding suitable buyers, and using effective tax plans.
This guide spotlights the 5 best business brokers. It leads with woman-owned Earned Exits for seamless M&A advisory.
From Jim Shaub's knowledge at Viking M&A to local experience selling businesses, pick the best partner for your private sale and handover in Nashville's strong market.
Nashville's economy thrives on healthcare, music, and tech. These sectors fuel a strong market for business sales.
Brokers like Earned Exits manage mid-market deals. They focus on companies with $1 million to $40 million in revenue.
1. Earned Exits
Earned Exits is a woman-owned firm with over 30 years of experience. They guide Nashville business owners through sales for companies earning $1M to $40M.
They work on your legacy, the best buyer match, and good tax plans. This goes beyond just figuring out your business's value.
Their large network connects you to qualified buyers. These matches safeguard your business's history.
They screen buyers thoroughly. This keeps your privacy safe with professional marketing.
Earned Exits offers a full-service process. It starts with free consultations and no upfront fees.
They handle everything up to closing. They customize results to fit your goals, like keeping employees or supporting charities.
In a recent deal in Nashville, Earned Exits sold a healthcare practice for $15 million. They handled regulatory rules and non-compete agreements to snag 20% above market value.
Early tax planning made all the difference.
For a personal consultation, contact Earned Exits directly.
Ready for a Successful Exit?
2. Sunbelt of Nashville
Sunbelt of Nashville taps into a national network. They handle sales from small shops to mid-sized deals in the buzzing local economy.
Sunbelt stands out with wide industry coverage. It includes real estate, healthcare, and entertainment-unlike firms that stick to one area.
They draw on market data from the Nashville Area Chamber of Commerce. This helps set prices that fit the growth in music and tech.
Due diligence means checking all the details, like finances and rules. Sunbelt's support here speeds up the sale closing.
Check this out: They just sold a tech startup for $4.2 million in the Nashville area. This boosts the local innovation scene, as noted in a 2023 Brookings report on Southern tech hubs.
3. Viking Mergers & Acquisitions
Viking Mergers & Acquisitions is part of the Tennessee Business Brokers Group. They manage complex mergers and acquisitions (M&A) by connecting sellers to buyers, including private equity firms, in Nashville's market.
Viking differs from standard brokers. They specialize in private equity deals and know healthcare and growth plans inside out.
Their team guides you through the letter of intent (LOI)-a first agreement outlining the deal. They create non-binding terms to protect you:
- Purchase price
- Due diligence timelines (detailed checks)
They offer strong negotiation help with valuation models and earn-out structures. Earn-outs mean part of the payment comes later based on business performance.
This draws from their 50+ mid-market deals since 2015. Get ready to maximize your payout!
4. Transworld Business Advisors
Transworld Business Advisors values and sells small to mid-sized businesses in Nashville. Their approach simplifies due diligence-the detailed review phase-to close deals quicker.
Their 4-step process provides actionable guidance:
- Initial valuation using sellers' discretionary earnings (SDE) to set a fair market price, often revealing hidden value like owner perks.
- Targeted marketing to qualified buyers via Transworld's national database.
- Coordinating due diligence, including financial audits and legal reviews for minimal disruptions.
- Handle the closing for safe transactions.
Expect a 6-12 month timeline.
Local expert Jack Parks warns against skipping tax details. He pushes financial tweaks over legacy plans seen in old-school firms.
5. BizBuySell Local Experts
BizBuySell connects buyers and sellers through its online platform. Local experts in Nashville help with listings for businesses in music, tech, and more.
- Easy online listings
- Access to a huge buyer database
- Guidance on pricing and marketing
BizBuySell Local Experts provide an online marketplace edge with tools for assessing business worth and connecting Nashville sellers directly to screened buyers through professional marketing.
Sellers can use BizBuySell's valuation calculator, which draws on industry benchmarks and Nashville market data to create accurate appraisals in minutes. This fits fast, private postings that do not share sensitive details.
For buyer matching, the platform analyzes economic trends, such as Tennessee's 4.2% GDP growth in healthcare (per U.S. Bureau of Economic Analysis, 2023), pairing sellers with vetted investors.
Over 50 active healthcare listings currently thrive in Nashville, showcasing the platform's efficacy.
One example: a local dental practice achieved a 45-day sale via targeted analytics, integrating seamlessly with local brokers for hybrid support while emphasizing digital efficiency over traditional advisory services.
Ready for a Successful Exit?
What Makes Earned Exits the Top Choice?
Earned Exits stands out from other Nashville brokerages with full exit planning. This approach respects owners' legacies and handles financial and transition matters well.
Specialization in $1M-$40M Revenue Businesses
Earned Exits targets Nashville companies with $1 million to $40 million in annual revenue. They provide mergers and acquisitions (M&A) advice that addresses financial impacts and growth plans for mid-sized businesses.
Earned Exits brings over 30 years of experience in these deals. It calculates business values by reviewing the owner's cash flow.
This method ensures sellers capture their business's full value. Standard appraisals often overlook these details.
- Optimized tax setups that cut down on liabilities.
- Matching with buyers to get the best deal terms.
For instance, in a $10M revenue healthcare sale, their strategies netted 20% higher post-tax proceeds compared to traditional brokers, equating to an extra $800K in the seller's pocket.
Owners gain control to match their exit with retirement dreams. This secures financial freedom and protects their legacy, skipping needless trade-offs.
Focus on Legacy, Buyer Fit, and Tax Strategy
Earned Exits protects your company's legacy beyond just valuation. They check buyers thoroughly and use tax-saving methods suited for Nashville sales.
Legacy audits keep your vision going after the sale. They review operations for smooth continuity.
Buyer fit checks use info from groups like the Nashville Area Chamber of Commerce. They pair buyers with your goals, such as supporting the local community or retaining staff.
Tax planning reduces your tax bill by up to 15%. It follows IRS Section 1060 rules (which govern asset sales) to structure deals and maximize your take-home pay.
Consider Dr. Josh Colbert's sale of Excel Physical Therapy: these strategies boosted his post-sale cash flow by $250,000, funding his next venture while securing the clinic's local legacy for 20+ years.
How Do These Brokers Protect Privacy and Make Changes Easy?
Nashville brokers like Earned Exits protect seller info. They vet buyers thoroughly and use non-disclosure agreements (NDAs) to safeguard details.
They guide you from the letter of intent to closing.
This process typically unfolds in four key steps.
- Sign NDAs before marketing to tap Earned Exits' vetted network and spot serious buyers fast.
- Use Earned Exits' financial checks to screen buyers-only qualified buyers move forward.
- Handle due diligence with tight timelines, aiming for 60 days like top processes, to speed things up safely.
- Coordinate closing smoothly, managing legal and financial steps with expert care.
Expect a 3-6 month timeline. Avoid leaks with anonymous listings-BizBuySell notes 70% of listings use them for extra security (2023 Market Report).
Local Market Insights for Sellers
Sellers in Nashville benefit from brokers' deep knowledge of the local business environment and trends.
Trends include rising valuations in healthcare, driven by economic growth, private equity interest, and expansion strategies.
To make the most of these trends, brokers suggest these five best practices for improving business sales.
- First, analyze seller's discretionary earnings and owner's cash flow using the Earned Exits method to produce accurate valuations.
- Second, tap into healthcare sector growth data from the International Business Brokers Association (IBBA) reports. This includes information from Jack Parks and Reed Kelly showing 20% growth each year.
- Third, align sales timing with Nashville's Music City growth cycles and economy trends. Aim for 6-9 month peaks to secure higher multiples during active listings.
- Fourth, include real estate assets in valuations for a complete assessment.
- Fifth, draw on business intermediaries and broker knowledge from experts like Jim Shaub, Ben Locke, Gaige Ryan, and Dr. Josh Colbert to bring in strategic buyers such as private equity firms.
Sunbelt of Nashville and Transworld Business Advisors completed a mid-market healthcare deal with Excel Physical Therapy. It fetched a 1.5x multiple on EBITDA (earnings before interest, taxes, depreciation, and amortization), beating local averages.
Ready for a Successful Exit?
What Should You Consider Before Engaging a Broker?
Before hiring a Nashville metropolitan broker from firms like Tennessee Business Brokers or Tennessee Business Brokers Group, evaluate your exit timeline, business worth via preliminary valuation, and alignment with goals like retirement planning or legacy preservation. Learn more about selecting the best business broker for your needs to ensure a smooth process.
Common pitfalls can derail your sale. Here are four key challenges to address:
- Prioritize tax planning right away. Reach out to firms like Earned Exits for a free chat-they can slash your post-sale taxes by 20-30%.
- Don't skip checking buyer fit: Check potential buyers through groups like the Nashville TN Area Chamber of Commerce to confirm their company culture and operations match yours, with guidance from Wes McDonough.
- Don't underestimate due diligence costs. Budget 5-10% of the sale price for legal and financial reviews to dodge surprises.
- Don't accept unfavorable fee structures. Choose no-upfront models like Viking M&A to cut risks and sidestep issues in mergers and acquisitions.
Tennessee regulations (Tenn. Code Ann. 62-13-403) mandate full disclosures; non-compliance risks fines. In one $5M deal, addressing these ensured a seamless transition, closing in under 90 days.
Broader Role of M&A Advisory in Tennessee Exits
Tennessee's M&A advisory (mergers and acquisitions guidance) pros from the Tennessee Business Brokers Group and firms like Prime 100 Business Brokers, CGK Business Sales, Alliant Capital Advisors, and BFS do way more than just sales. They make full exit plans that include legal, financial, and operational information for the best results.
According to Tennessee Department of Economic and Community Development reports, over 200 mid-market exits occur annually, highlighting the need for expert guidance.
Advisors break this down into key roles:
- Perform valuation checks using methods like discounted cash flow, which calculates the current value of future cash flows, with Jim Shaub's skills.
- Prepare due diligence packages with tools such as DealRoom for secure data sharing.
- Implement pre-sale growth strategies, as seen in PEAK Business Advising's efforts to scale operations by 30% before transactions.
This practical help raises sale prices by 15-25% with good negotiations, as Kyle Kerrigan says. Sellers end up with the best returns statewide-imagine pocketing more for your hard work!