If you’re thinking about selling your business in Tampa or St. Petersburg, don’t start by asking a broker what commission they charge.
Start with better questions.
A business broker can influence how your company is valued, how it is presented to buyers, who gets access to your information, how offers are evaluated and whether the transaction ultimately closes.
After more than 20 years in the business, I’ve learned that owners should interview their broker the same way a buyer interviews the business.
Here are 10 questions I would recommend every Tampa Bay business owner ask.
1. How Many Businesses Have You Actually Sold?
Not listed.
Sold.
There’s a difference.
Listings don’t pay your retirement.
Closings do.
Michael Shea has been working in business brokerage since 2005 and currently reports more than 450 transactions and over $1 billion in sold business volume.
That history doesn’t guarantee the outcome of any individual transaction.
But it does mean you’ve got someone who has been through the process many times.
2. Do You Understand the Tampa Bay Market?
Tampa and St. Petersburg aren’t interchangeable with every other Florida market.
The buyer pool, industries, demographics and economic conditions matter.
Your broker should be able to explain what buyers are looking for in Tampa Bay and how your company compares with other businesses in the market.
Transworld currently identifies Michael Shea specifically with the Tampa and St. Petersburg market.
3. How Are You Going to Determine My Asking Price?
If the answer is simply:
“We’ll take your earnings and multiply them by X.”
Keep asking questions.
Valuation requires context.
SDE.
EBITDA.
Revenue.
Assets.
Customer concentration.
Recurring revenue.
Growth.
Risk.
Owner dependence.
Contracts.
Industry.
Buyer financing.
Comparable transactions.
These all matter.
I have written extensively about business valuation because I believe owners deserve to understand why a business is worth a particular amount — not simply be handed a number.
4. How Are You Going to Find My Buyer?
This may be the most important question.
Who is actually going to buy the business?
A Tampa business may have a Tampa buyer.
But the best buyer could come from another Florida market or another state.
Transworld’s network provides access to a broader pool of business buyers and business brokerage professionals.
That is one of the reasons I believe the combination of a local broker and a national network can be valuable.
5. How Do You Protect Confidentiality?
This question should be asked early.
Your employees don’t need to know.
Your customers don’t need to know.
Your competitors don’t need to know.
Your vendors don’t need to know.
At least not until the transaction reaches the appropriate stage.
A professional broker should have a process for protecting confidential information and qualifying buyers before sensitive information is disclosed. Transworld specifically identifies confidentiality and buyer qualification as components of its business-sale process.
6. What Happens After We Get an Offer?
This is where inexperienced brokers can get exposed.
Getting an offer is only the beginning.
Then comes:
- Letter of Intent
- Financing
- Due diligence
- Financial verification
- Lease review
- Asset review
- Working capital
- Legal documentation
- SBA underwriting, when applicable
- Purchase agreement
- Closing
The buyer can also attempt to renegotiate during diligence.
Your broker needs to know how to manage the process.
7. What Credentials Do You Have?
Credentials don’t replace experience.
But they can demonstrate a commitment to professional education.
My credentials include the IBBA Certified Business Intermediary®, Certified Exit Planning Advisor®, Certified M&A Professional, and Board Certified Intermediary designations, in addition to being a Florida Licensed Real Estate Broker.
For an owner selling what may be their largest asset, those distinctions are worth asking about.
8. Can I Read Your Work and Watch Your Videos Before Hiring You?
I actually think every business owner should do this.
Read what your prospective broker writes.
Watch what they say.
Listen to how they talk about deals.
Do they explain things?
Do they discuss difficult subjects?
Do they understand financing?
Do they talk about valuation?
Do they understand exit planning?
I’ve been writing and producing video content for years because I believe business owners should have access to useful information before they make a major decision. My LinkedIn profile contains hundreds of articles and posts, while my YouTube channel provides videos on business sales, valuations, acquisitions and exit planning.
9. What Should I Fix Before I Sell?
This is perhaps my favorite question.
Because sometimes the best advice a broker can give you is:
“Don’t sell yet.”
Maybe your financial statements need work.
Maybe you need to reduce owner dependence.
Maybe you have a customer concentration problem.
Maybe your contracts aren’t transferable.
Maybe you have too much personal spending running through the business.
Maybe you need another year of clean financial performance.
Maybe your business simply isn’t ready.
The goal isn’t to get a listing.
The goal is to maximize the owner’s outcome.
10. Will You Tell Me What I Don’t Want to Hear?
This is the ultimate question.
A business broker isn’t supposed to be a cheerleader.
You’re paying for judgment.
Sometimes the valuation is lower than the owner expects.
Sometimes the buyer’s offer isn’t as good as it appears.
Sometimes the financial statements have problems.
Sometimes the business needs work.
Sometimes the timing is wrong.
Sometimes the seller needs to compromise on structure.
I believe a broker has to be willing to say those things.
So Why Michael Shea and Transworld?
I would never tell a Tampa business owner that they shouldn’t interview other brokers.
You should.
Interview them.
Compare their experience.
Compare their marketing.
Compare their buyer reach.
Compare their valuation methodology.
Compare their transaction history.
Compare how they communicate.
Then decide.
But if you’re looking for a Tampa Bay business broker with more than two decades of experience, hundreds of completed transactions, more than $1 billion in sold volume, professional credentials and the resources of the Transworld organization, Michael Shea is worth putting on your interview list.
You can learn more before ever picking up the phone.
Michael Shea represents the Tampa Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 476 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential. He is also a Florida Licensed Real Estate Broker and Business Brokers of Florida Board Certified Intermediary . Shea is a member of the VRMA and a recognized expert in property management and vacation rental management business sales