Broker Networks

Transworld Business Advisors transaction diligence

Published · Reviewed by The Diligence Standard Team · Updated

Large business-brokerage network marketing Main Street businesses, franchises and M&A opportunities.

Diligence focus

  • Broker CIM/listing reconciliation
  • SDE/EBITDA support
  • Lender-prequalification scope
  • Management-will-stay evidence
  • Real-estate inclusion
  • Asset condition
  • Customer concentration
  • Licenses

First evidence requests

  • Broker/CIM financial bridge
  • Tax returns
  • Monthly financials
  • Add-backs
  • Management roster and retention
  • Asset schedule
  • Lease/property documents
  • Licenses and permits

Warning signals

  • Broker package is treated as independent verification
  • Lender prequalified is treated as final financing approval
  • Down payment is mistaken for total required equity/liquidity
  • Management continuity is verbal
  • Listing SDE does not match source periods