By Owen Murray, The BusinessSellerCenter

A business broker’s role is to serve as an intermediary and as a trusted advisor to their client. With that, the broker should always be acting in their client’s best interest. This does not mean, however, that a business broker should avoid challenging either party involved. In fact, it is often in everyone’s best interest for the broker to take on the role of Devil’s advocate. By asking the tough questions, pointing out inconsistencies, and pushing for clarity, a broker can prevent misunderstandings that could derail the sale later on.

When it comes to selling a business, transparency is one of the most valuable tools a seller can have. While it might seem tempting to downplay a problem or leave out an uncomfortable detail, those decisions can have serious consequences once due diligence begins.

The due diligence process is thorough by design. Buyers and their advisors will comb through financial statements, contracts, customer records, employee matters, and more. Any red flags that surface late in the process can create doubt, stall negotiations, or even cause a deal to collapse. Broken trust is hard to regain.

Selling your business is all about minimizing risk to buyers. Buyers are going to look at and evaluate a business differently than a seller/owner might. A business owner may think that they have a great business simply because they have strong sales and are profitable. Profits and earnings are important, but buyers are looking at a much bigger, broader picture. Let’s discuss three red flags that indicate risk to a buyer.

For business owners thinking about a future sale, understanding the basics of business valuation is a critical first step. One of the most important, and commonly referenced figures in small business transactions is Seller’s Discretionary Earnings (SDE).

At the Spring 2025 M&A Source Conference, Kevin F. Murray was recognized with the Executive Club Award. This national honor is awarded to advisors who close over $5 million in transaction value across the lower middle market in a single calendar year.

The Business Seller Center is proud to announce that its founder and principal broker, Kevin F. Murray, has been awarded the prestigious Chairman’s Circle Award at the 2025 Annual International Business Brokers Association (IBBA) Conference.

When it’s time to sell your business, few decisions are more important than choosing the right business broker. This isn’t just a transaction – it’s the culmination of years of effort, risk-taking, and dedication. The right broker can significantly increase your final sale price and ensure a smooth, confidential, and professionally managed process. The wrong broker, however, can cost you time, money, and peace of mind.

So how do you choose wisely?

Key considerations when selecting a business broker:

Experience Matters – But Not Just Any Experience

Most businesses are valued on a ‘multiple of earnings’ approach.

And, the higher your overall revenues and earnings, the higher multiple you are entitled to when it is time for you to sell.

For this reason, it may make a lot of sense to consider buying another business in your industry. Here’s why:

Let’s say there is a $2,000,000 annual revenue business in your industry, in your state and it is generating $400,000 in earnings for the Owner.

That business might be worth 2.5 - 3 times earnings.

Now, assuming you are the same size, you are worth a generally similar amount.

In this episode, #3 of the Expert Interview series from the Business Seller Center, we talk with Attorney Joe Fournier about the critical legal agreements that are needed to successfully sell your business.

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