Sunbelt Whipping Rivals

Sunbelt Business Advisors of the Ozarks Inc. has apparently been “taking names” lately in the business brokerage sector. Their formerly secret weapon is a new interpretation in the Internal Revenue Service tax code that lets investors use their 401(k) or IRA funds to buy a business with no taxes or penalties.

We’re not aware of anyone else in Northwest Arkansas that’s yet using the same “self-venture capitalization” investment tool.

In the last two months, Sunbelt has brokered several deals using the new investment vehicle. During the week of Nov. 12, the franchise helped tool company Dayco Inc. of Springfield, Mo., buy fireplace manufacturer Al & Sons Inc. by rolling a $50,000 IRA into the acquisition.

According to the code, pension, profit sharing, 401(k), 403(b) other retirement plans and rollover IRA money may be used to fund a new franchise, business startup or business property. And it may be done without distributions, taxes, penalties or the use of loans.

Sunbelt, based in Charleston, S.C., has more than 300 offices across the nation and in eight foreign countries. Carl Grimes, owner/broker of Sunbelt’s Fayetteville & Springdale, Mo., franchises, is chairman of the company’s national franchisee board. His son, Connor Grimes, is the Fayetteville office manager and a business broker.

The company, found on the Internet at www.sunbeltoftheozarks.com, specializes in putting buyers and sellers of companies together and brokering their transactions.