Broker withholding Tax Returns for Non-SBA deal

by a searcher from University of Maryland at College Park

11 months ago

Are tax returns standard diligence items for non-SBA deals (~$1M purchase price)?

The seller's broker is pushing back on sending tax returns saying that it's atypical for a buyer to request tax returns for a non-SBA deal. 

How would you handle a situation like this?

0 likes
78 views
11 comments

searcher from Indian School of Business

Tax returns are important because you are usually dealing with unaudited financials and at least there is some incentive not to lie to the government (you might get audited). The broker flat out refusing is a clear sign that they have no idea what they are talking about. I've faced it a couple of times so it does happen. They are likely to be feeding the seller all kinds of other crazy advice along with this so it's probably not worth dealing with them.

11 months ago | like reply | 1 like

searcher from Virginia Polytechnic Institute and State University (Virginia Tech)

Total horse shit

11 months ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Investor seeking Self-Funded Search Deals

6-7x for a Self-funded Search Deal?

Thought piece: Proprietary sourcing methods that delivered 2 acquisitions

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.