What should I expect from my broker once buyers start making offers?
Your broker must present all qualified offers to you regardless of their personal preference, verify each buyer's financial capability, provide objective analysis of strengths and risks, and coordinate communication through LOI negotiation and due diligence.
Your broker's core responsibilities during the offer stage
Business brokers typically receive multiple offers simultaneously or within a compressed timeframe when representing sought-after businesses. Your broker's primary obligation is to present all qualified offers to you — the CABB Code of Ethics requires this regardless of which deal the broker personally prefers. A broker's commission is the same percentage regardless of which buyer you select, eliminating financial incentive to steer you toward any particular offer.
Before presenting an offer, brokers commonly verify buyer financial qualification by confirming proof of funds for cash buyers or pre-approval letters for financed transactions. This screening ensures you see only offers from buyers capable of closing.
How your broker should present and evaluate offers
Your broker should provide written summaries comparing key terms across offers including purchase price, deposit amount, financing contingencies, due diligence period, and proposed closing date. Brokers should explain the difference between headline purchase price and net-to-seller proceeds after adjustments, holdbacks, and transaction costs.
Brokers typically provide objective analysis of each offer's strengths and risks, evaluating buyer financing capability, deal structure, contingencies, and closing timeline. They should also explain the implications of common LOI terms including earnouts, seller financing, working capital adjustments, and post-closing employment requirements.
Your broker should coordinate with your legal and accounting advisors during offer review to ensure tax implications and legal structure are properly evaluated before LOI acceptance.
What your broker does during LOI negotiation
Letters of Intent in Canadian small business transactions typically include a 30–60 day exclusivity period during which you agree not to negotiate with other buyers while the selected buyer completes due diligence. During this negotiation phase, brokers commonly coordinate communication between buyer and seller, often drafting counterproposal language and managing timeline expectations for both parties.
Brokers must maintain confidentiality of competing offers and not disclose one buyer's terms to another buyer without your explicit authorization — this is a verified requirement under the CABB Code of Ethics.
In competitive bidding situations, brokers may conduct structured processes including best-and-final offer rounds with defined deadlines, though this approach is more common in larger transactions.
Communication and timeline management
Professional brokers provide regular status updates to sellers during active offer negotiations, typically within 24–48 hours of receiving new information from buyers. Once an LOI is signed, brokers commonly coordinate the due diligence process by organizing seller documentation, scheduling site visits, and managing information requests from the buyer's advisors.
Red flags: what your broker should never do during offers
Ethical brokers do not pressure you to accept the first offer or rush decision-making without adequate time to review offer terms and consult advisors. Brokers who refuse to present lower offers or discourage sellers from considering multiple offers may be prioritizing transaction speed over seller outcome — this contradicts professional standards requiring presentation of all qualified offers.
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 offers, pricing, or engaging an advisor, consult a qualified professional familiar with your specific situation.
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