Quick take
- A signed NDA and a short screening call come before any summary
- Proof of funds or a lender letter comes before you spend time with a buyer
- Tax returns and bank statements are shared late, only with qualified buyers
- Watch for buyers who cannot explain how they will pay
Why Screening Exists
A well priced business can draw dozens of inquiries, sometimes more than a hundred. Many are curious, not ready. Each one who sees your details is a risk to your staff, your customers and your privacy.
The Usual Order
- The buyer signs an NDA
- A short screening call covers location, timing and experience
- The buyer receives a summary without your name
- Proof of funds or a lender pre qualification letter follows
- Meetings and deeper financials come later
Full tax returns and bank statements usually wait until a buyer is qualified and in diligence.
Proof of Funds
Ask for something you can verify, such as a bank commitment letter or a statement showing cash. A promise that someone is good for it is not proof.
Buyers who plan to use an SBA loan should show that the application has actually started.
Warning Signs
- The buyer claims SBA financing but has not started a loan
- A late switch to a seller note with no explanation
- A buyer who keeps a full time job and plans to hire a manager
- Heavy demands for data before any offer
- Pressure for exclusivity right away
If a buyer plans to install a manager, ask who trains that person and what happens if they quit.
Unsolicited Offers
An offer that lands without a listing may be a buyer hoping for a cheap deal done directly. Do not grant exclusivity early. Get a valuation and test the market first.
Questions Sellers Ask
Will buyers know who I am? Not at first. A summary describes the business, its sales and cash flow without naming it. Your name comes after the NDA and the screening call.
What if a competitor asks? Competitors can be screened too, and some sellers hold back sensitive details until late in the process.
Should I meet every buyer? No. Meet only those who have signed an NDA, shown funds and passed a short call. Your time is part of what you are protecting.
What You Should Hold Back
Do not share customer names, supplier terms or employee details before the buyer is qualified. Sensitive contracts, such as those for government contractors, may carry their own limits.
If your deal includes a note, check the buyer carefully, as covered in seller financing terms.
Ready for a price range? Request a confidential valuation.