What should I expect from my broker in the first 30 days of engagement?
The first 30 days with your business broker are dedicated to documentation, valuation, marketing materials preparation, and initial buyer outreach. You should receive a signed engagement agreement, provide comprehensive financial records, participate in valuation discussions, review draft marketing materials including a Confidential Information Memorandum, and attend a formal progress review meeting at the 30-day mark.
Engagement agreement and initial setup (Days 1-7)
Your broker will present an engagement agreement within the first week. This agreement typically grants exclusive listing rights for 6–12 months, establishes commission rates of 8–12% of the transaction value, and includes a tail provision of 6–12 months after the listing expires. The broker will also establish secure document-sharing systems, set up confidentiality protocols, and create buyer inquiry tracking systems within the first 10–14 days.
Communication expectations are set during this period. Brokers commonly provide weekly updates during the first month, transitioning to bi-weekly or as-needed updates once marketing is fully active.
Business information gathering and verification (Days 1-14)
Within the first week, your broker will request comprehensive financial documentation including three years of tax returns, profit and loss statements, balance sheets, and accounts receivable and payable aging reports. For businesses operating from leased premises, lease assignment review and landlord notification strategy are addressed within the first 14 days, as lease transferability affects the buyer pool and pricing.
Initial tax and legal structure consultation typically occurs within the first two weeks. Brokers commonly advise sellers to engage accountants and lawyers for asset versus share sale structuring and tax planning.
For retail, restaurant, and location-dependent businesses, professional business photography and asset inventory documentation are standard deliverables in the first 2–3 weeks.
Valuation and pricing strategy (Days 7-21)
The valuation process typically takes 7–14 days and involves analyzing comparable sales, applying industry-standard multiples, and reviewing financial performance trends. Your broker will present a pricing recommendation based on this analysis and discuss positioning strategy relative to current market conditions.
Marketing materials development (Days 14-28)
Your broker will develop marketing materials across multiple formats during this period. For retail and service businesses, this includes professional photography and visual documentation. All marketing materials undergo seller review before publication to ensure accuracy and appropriate confidentiality.
Confidential Information Memorandum (CIM) preparation (Days 14-30)
A standard Confidential Information Memorandum for a small business sale is typically 15–30 pages and includes company overview, financial summary, market analysis, operations description, and growth opportunities. You will review and approve the CIM before it is shared with qualified buyers. The CIM is released only after buyers execute confidentiality agreements and demonstrate financial capacity.
Initial buyer outreach and listing activation (Days 21-30)
Brokers typically activate marketing across 3–5 channels within the first 3–4 weeks, including MLS-style business listing services, direct outreach to qualified prospects, industry-specific databases, and broker networks. Initial buyer qualification screening includes verification of financial capacity through proof of funds or financing pre-approval, industry experience assessment, and confidentiality agreement execution before sharing detailed business information.
First progress review meeting (Day 30)
A formal 30-day review meeting is standard practice. This meeting covers marketing performance, initial buyer inquiries, pricing strategy validation, and next-phase activities. Your broker should provide specific metrics on listing views, inquiries received, buyers qualified, and outreach activities completed.
This article is for informational purposes only and does not constitute financial, legal, or business advice. Every business sale is different. Before making decisions about valuation, pricing, or engaging an advisor, consult a qualified professional familiar with your specific situation.
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