Selling a business takes effort and time; a business broker ensures confidentiality, financially qualified prospects, deal negotiations, and a successful closing. 

Pricing a business

In conjunction with a CPA, a business broker conducts a thorough market analysis, determining the best price for your business.

Buyer prospecting

Once a business owner has decided to sell his business and all the pertinent documents have been prepared, a business broker qualifies all potential buyers.


Preserving confidentiality is one of the main reasons to hire a business broker. Brokers manage the requirement of financial statements and confidentiality agreements of all potential buyers before your company name and location are provided.

Higher sale price

A business broker brings a highly honed skill set to ensure the seller obtains the highest price for a business, such as evaluation experience, market awareness, and knowledge of deal structure to name a few.

Handling the support team

Having a support team in place facilitates a smooth business transfer. A CPA, attorney, lender, and controller are needed in the sales process and the business broker is the natural point person that coordinates your winning team.

The closing process

The closing process is usually the most strenuous and stressful steps involved in the sale of a business. A seasoned business broker has the experience of working with closing attorneys and escrow companies, ensuring your interests are protected as the deal closes and relieving the seller of handling any problems on their own.

Services provided by a qualified Business broker 

· Consultation and review of seller’s documentation

· Review of seller’s financial statements

· Market analysis

· Listing agreement, seller’s disclosure & file

· Marketing plan development

· Buyer qualification, interview, and screening

· Business showings and follow-up

· Buyer Letter of Intent and seller presentation

· Meetings with buyer/seller to coordinate buyer due diligence

· Consultations with buyer/seller and outside team advisors

· Consultation with parties regarding transfer of licenses, utilities, etc.

· Attending the closing and subsequent transfer of the business

To learn more about selling a business, get this book by Alex Vantarakis, “Exit– A Business Owner’s Guide To Selling A Company”.

It has been well documented that only a low number of small businesses listed actually sell. While there is a myriad of reasons why overpriced businesses are quite common thus accounting for a high percentage of them going unsold. Anyone who studies markets knows that markets can swing. Sometimes the markets are bullish, and prices can be pushed to a premium and sometimes the markets can be bearish, and prices are discounted.

It is very important for sellers to set realistic price expectations when selling their business. For example, let us take a real estate transaction. If all homes in your neighborhood with the same square footage, bedrooms, and amenities sold for $300,000; it would not be prudent to list yours for $600,000 and expect a lot of buyers.

The same is true for business transfers. Buyers are becoming more astute and will benchmark your company against other similar listings. If you are charging too much of a premium, buyers will seek other opportunities.

Markets often change quickly, and as a seller, you do not want to run the risk of missing a bull market just to squeeze an extra dollar or two from the buyer, especially if the underlying fundamentals of the company do not merit the increase in value. The TVG Valuation Services can get a business over this hurdle. Business owners are also able to take advantage of the AOBT event discussions, which are geared toward attendee requested topics.

Here is an article that further explains the importance of setting a realistic price when selling a business.


Challenge:  There was a significant change in the profit and loss (P&L) statement from the seller after TVG had already marketed an EBITDA number and found a Buyer based on the original inaccurate data.

Since, the seller was unaware of his own financial numbers and not familiar with how to read financial statements, he gave the documents to TVG stating that they were complete and final statements from their CPA.  At that point, their tax returns were not yet filed for that year, so TVG used the P&L for the current year in the EBITDA calculations.  The full EBITDA number was calculated using two years of prior tax returns and one year of the current P&L.  The current P&L was weighted at 50% towards the marketed EBITDA number to most closely mimic trends in their business.  However, the CPA was a year behind on entering expenses due to the seller/owner’s delay of delivering credit card statements.  This produced a grossly overstated profit statement.

Approach:  When the bookkeeping was complete, the final and correct P&L was delivered. TVG was able to explain to the buyer the reason for the changing numbers.   It was agreed that the sale price would be adjusted accordingly.  The same multiple that was applied on the incorrect EBITDA was applied to the new EBITDA, and the buyer was satisfied with the adjustments.  With a proper explanation of the error,  he proceeded in buying the business.   TVG used a weighted average of three years of EBITDA so the change in the current year EBITDA was only weighted at 50%.  Therefore, the impact on the new sale price was only 50% of the corrected EBITDA numbers.  Whereas, had TVG used the current year P&L EBITDA 100%, the effect on the sale price would have been much more significant.

Result:  Buyer was happy with the approach to the adjusted sale price and TVG was able to close the deal.