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In the fast-paced and often emotionally charged
world of business sales, setting clear expectations
from the very beginning of the process can make
or break a deal. Business brokers are not merely
intermediaries—they are educators, advisors,
and trusted guides. The moment a broker engages
with a seller or buyer, the tone for the entire
transaction is set. How effectively the broker
educates each party and aligns their expectations
will significantly influence the outcome.
This article outlines the most common pitfalls
when expectations are misaligned and explores
how brokers can structure their initial engagement
with sellers and buyers for smoother, faster, and
more successful transactions.
THE CRITICAL FIRST MEETINGS:
SETTING THE TONE
For many business owners, the decision to sell
is monumental. Often, they speak to only one or
two brokers before making a choice. These initial
meetings are more than just introductions—they’re
an opportunity to educate the seller about the
sales process, valuation methodology, timeline,
confidentiality measures, and buyer expectations.
Unfortunately, some brokers make the mistake
of prioritizing getting the listing agreement over
education. This short-sighted approach often leads
to frustration, price adjustments, or withdrawn
listings down the road. When sellers are fully
informed about what’s included in the price, how
long the process might take, and what buyers
typically ask during due diligence, they are more
likely to stay committed and cooperative.
OVERPROMISING: A DEAL KILLER IN DISGUISE
A common pitfall in business brokerage is
overpromising. Some brokers agree to inflated
listing prices to win the engagement, assuming they
can convince the seller to lower the price later. This
approach often backfires.
For example, one seller insisted on listing their
business at double its market value. The broker
reluctantly agreed, and after a year on the market
with no serious offers, the seller’s confidence—and
the business’s perceived value—had both eroded.
When the business eventually sold years later, it
was for significantly less than it might have fetched
if priced right the first time.
Overpricing doesn’t just delay deals—it can anchor
sellers to unrealistic numbers and damage the
broker’s credibility with buyers. Trust is hard
to build and easy to lose. Brokers should rely on
valuation data and market comps, even if it means
losing a listing. In the long run, honesty earns more
referrals than wishful thinking.
EDUCATING SELLERS
ON WHAT THE PRICE INCLUDES
Another point of confusion is what’s included in
the sale price. Sellers often assume the price they
receive is net of inventory or equipment, when in
reality, most buyers expect a “turnkey” purchase