Broker Networks

Sunbelt Business Brokers transaction diligence

Published · Reviewed by The Diligence Standard Team · Updated

Local brokerage knowledge can be useful, but underwriting remains buyer-side work. Reconcile listing cash flow, revenue, owner role, real estate, contracts and state/local operating requirements.

Diligence focus

  • Listing cash flow
  • Local market claims
  • Owner replacement
  • Lease/site
  • Contracts
  • Asset condition
  • Licenses
  • Working capital

First evidence requests

  • Tax returns
  • Monthly P&L/balance sheet
  • Bank support
  • Customer/vendor detail
  • Employee roster
  • Assets
  • Lease/property documents
  • Licenses

Warning signals

  • Local market strength substitutes for company-specific evidence
  • Cash flow lacks a reconciliation bridge
  • Real estate materially changes valuation but is not separated
  • Seller transition is vague
  • Licensing depends on an exiting owner