The M&A Broker
Seller Qualification System

Business type is the first routing variable in this assessment. Service businesses, product companies, and asset-heavy operations are valued, marketed, and sold through fundamentally different processes. Your answer determines which buyer pool we access, which valuation methodology applies, and which due diligence timeline is realistic.

Revenue is the primary driver of valuation methodology, buyer type, and transaction structure. Sub-$1M businesses attract individual buyers using SBA financing. $1M–$5M businesses attract lower middle-market and PE-backed strategics. Over $5M you enter a different deal universe entirely — larger buyer pool, higher multiples, more complex terms. Approximate is fine.

Financial record quality is the single most common reason deals fall through after an LOI is signed. Buyers don't walk away from good businesses — they walk away from businesses whose financials can't be verified. Clean, CPA-reviewed books with 3 years of tax returns accelerate the deal and protect the valuation. Messy books create retrading risk. Your honest answer tells us what preparation is needed before we go to market.

Seller motivation directly affects deal timeline, price flexibility, and buyer confidence. A seller who is financially motivated and emotionally ready moves faster and closes more cleanly than a seller testing the market. Buyers sense ambivalence during negotiation and due diligence. Knowing your actual motivation helps us position the engagement correctly from day one.

Owner dependence is one of the top three valuation discounts buyers apply. A business where revenue, relationships, or operations flow through the owner is a higher-risk acquisition than one with documented systems and a leadership team. This doesn't disqualify your business — but it determines how we position it, what transition timeline we build into the deal structure, and what your realistic valuation ceiling looks like.

Price expectation alignment is responsible for 25% of all failed business sales (IBBA). Sellers with unrealistic expectations based on emotional attachment rather than market multiples waste months — theirs and their broker's. We use revenue, EBITDA, and comparable sale data to establish market-clearing valuations. Your honest answer tells us whether we are starting from the same data set.

Timeline is a major deal-structure variable. The business sale process typically takes 6–12 months from engagement to close. Sellers who need to exit in 90 days require a different approach — and a different buyer type — than sellers with 18 months of runway. Optimistic timelines create pressure that damages deals. Be realistic.

Prior market exposure affects deal velocity and buyer perception in ways most sellers don't anticipate. A business listed for 18 months that didn't sell carries a market stigma — buyers assume something is wrong. If your business has been to market before, we need to understand why it didn't sell and what has changed before going back out.

Referral source tells us about your awareness of what the process involves. Sellers referred by attorneys, accountants, or advisors typically arrive more prepared than those who found us through a cold search. We adjust the first conversation accordingly — meeting you where you are, not where we assume you are.

Buyer preference shapes the entire go-to-market strategy. Individual buyers, private equity groups, and strategic acquirers each approach deals differently — different timelines, different due diligence depth, different deal structures. There is no wrong answer here. Knowing your preference upfront means we build the right buyer profile and approach the right pool first, not after a failed round of the wrong buyers.