You would think this type of confidential package would be the norm for business brokers, but you may be surprised to learn that the average information package we see from other brokers contains little more than 1-5 pages of qualitative information along with financials. Then when follow-up questions are asked, it's common for business brokers who use a less comprehensive information package to immediately schedule a meeting between the buyer and seller, rather than answer the questions. The result is often wasted time for both the buyer and seller as they quickly discover that the business is a mis-match with the buyer's acquisition criteria.
Business sellers may prefer to not devote time up front to compiling comprehensive information, but putting in the effort to develop quality and comprehensive information packages will save a business owner significant time during the business sale process by avoiding inappropriate meetings, limiting follow-up questions, and avoiding deal termination due to a buyer discovering facts about the business that should have been disclosed earlier in the process. More complete information gives buyers more confidence in the business, lowers uncertainty, and increases the probability of a deal successfully being completed.