Why Your CPA Isn’t Your Broker

Brandon Chicotsky
Oct 10
10 min read

When selling your business, relying solely on your CPA can lead to missed opportunities. Here's why:

CPAs focus on financial accuracy, tax compliance, and preparing essential documents like balance sheets and tax filings. They ensure your financials are in order but typically lack expertise in deal-making, marketing, and negotiations.
Business Brokers specialize in selling businesses. They manage the entire process, from creating buyer competition to negotiating deals. Brokers also protect confidentiality, conduct market research, and connect you with qualified buyers.

Key Differences:

Valuation Approach: CPAs use historical data; brokers factor in market trends and buyer demand.
Buyer Network: Brokers have access to a larger pool of qualified buyers.
Marketing: Brokers craft detailed materials showcasing your business's strengths.
Negotiation: Brokers are skilled in structuring deals and securing better terms.
Confidentiality: Brokers use advanced methods to protect sensitive information.

For a successful sale, combine your CPA's financial expertise with a broker's market knowledge and negotiation skills.

What CPAs Do in Business Transactions

CPAs play a crucial role in ensuring accurate accounting and tax compliance, but their expertise typically doesn't extend into the realm of deal-making. While their skills provide a strong financial foundation, they don't cover the strategic aspects of executing business transactions.

Main Skills of a CPA

CPAs are highly skilled at laying the groundwork for business transactions. They handle the preparation of essential financial documents like profit and loss statements, balance sheets, and cash flow reports - key resources for potential buyers. They also manage complex tax filings and ensure compliance with federal, state, and local regulations. During the due diligence phase, CPAs assist by organizing financial records and clarifying accounting practices to support a smooth review process.

Additionally, CPAs often develop exit tax strategies aimed at reducing tax liabilities during a sale, offering a significant advantage for sellers [1][2].

Where CPAs Fall Short in Business Sales

While CPAs excel in financial analysis, they often lack the specialized skills and market knowledge needed to sell a business effectively. Their focus on accounting means they are less equipped to handle critical aspects like market positioning. Many CPA firms still rely on outdated marketing techniques and lack a robust online presence, which can limit their ability to attract potential buyers [4].

CPAs tend to concentrate on historical financial data, leaving tasks like market analysis, identifying the right buyers, and negotiating complex deals largely unaddressed. These areas require a combination of strategic insight and specialized tools - neither of which are typically part of a CPA's toolkit. Even when CPAs offer services like valuations or estate planning, they often lack the expertise needed for managing confidentiality, vetting buyers, and handling negotiations effectively [3][4].

This gap underscores the importance of involving specialized brokers who can navigate the complexities of selling a business and drive successful outcomes.

What Business Brokers Offer

Business brokers bring a unique set of skills to the table, helping business owners navigate the complexities of selling their companies. Unlike CPAs, who focus on financial reporting and tax compliance, brokers specialize in the art and science of selling businesses. They understand market trends, buyer behavior, and the intricate steps required to move a deal from initial interest to closing.

Core Skills of Business Brokers

One of the key strengths of business brokers is their ability to perform certified valuations. These valuations go beyond basic financial metrics, incorporating market trends, industry benchmarks, and buyer demand. This ensures that a business is priced not only based on its financials but also on what buyers are willing to pay in the current market.

Brokers also excel in market research. Leveraging their networks and access to industry data, they identify and connect with the right buyers. They analyze different buyer categories and craft tailored marketing strategies to attract serious prospects.

A significant part of their role is preparing confidential marketing materials. These materials highlight aspects of the business that standard financial statements often overlook, such as growth potential, competitive advantages, and strategic value. By showcasing these details, brokers make your business more appealing to potential buyers.

Another critical task brokers handle is buyer qualification. Before granting access to sensitive business information, they screen potential buyers to ensure they have the financial capability, strategic alignment, and genuine interest to move forward. This process helps weed out unqualified buyers and protects sellers from wasting time on tire-kickers.

Maintaining Confidentiality and Driving Negotiations

Brokers are experts in safeguarding confidentiality throughout the sale process. They know how to market a business without revealing its identity, ensuring that competitors, employees, and customers remain unaware of the sale. This often involves creating blind profiles - documents that describe the opportunity without disclosing the company’s name or other identifying details. They also carefully control the flow of information to maintain discretion.

When it comes to negotiations, brokers act as mediators, keeping discussions productive and focused on reaching agreements that work for both parties. Their knowledge of common deal structures and financing options allows them to navigate complex negotiations, ensuring that deals don’t get bogged down by minor disagreements.

God Bless Retirement: Professional Brokerage Services

God Bless Retirement focuses on helping businesses with under $25 million EBITA achieve successful sales. The firm provides certified valuations and connects sellers with qualified, motivated buyers.

What sets God Bless Retirement apart is its dual focus on confidentiality and strategic marketing. They use their expertise to position businesses effectively in the market while ensuring that sensitive information remains protected. Their team includes a network of professional advisors - such as CPAs, financial planners, and private equity experts - who offer comprehensive support throughout the sale process.

To make the experience even more accessible, God Bless Retirement offers a free preliminary valuation and consultation. This allows business owners to explore their options without any upfront costs. Additionally, their full-service listings operate on a success fee basis, meaning clients pay only when a deal is successfully closed. This approach ensures a smoother, more efficient transaction with maximum value for sellers.

Problems with Using Only a CPA for Business Sales

Relying solely on a CPA to handle the sale of a business can create hurdles that might jeopardize the entire process. While CPAs are highly skilled in accounting and tax-related matters, selling a business involves a distinct set of expertise and tools that often fall outside their domain.

Common Challenges and Missed Opportunities

Inaccurate Valuations can lead to major financial consequences. CPAs typically base valuations on historical data and standard metrics, which don’t always account for current market conditions or buyer trends. This can result in pricing that’s either too high - scaring off potential buyers - or too low, leaving money on the table.

Limited Access to Buyers is another drawback. Unlike business brokers, CPAs usually don’t have a broad network of qualified buyers, such as strategic acquirers, private equity groups, or individual investors. This lack of connections can significantly reduce the pool of interested and capable buyers.

Confidentiality Risks are heightened when CPAs manage the sale process without specialized training in protecting sensitive information. Business brokers, on the other hand, use techniques like blind listings and rigorous buyer screening to ensure confidentiality.

"Experienced business brokers and M&A advisors are trained to protect confidentiality at every stage of the sale. They go beyond simply having potential buyers sign non-disclosure agreements. They also carefully vet buyers to ensure they are genuinely interested, not just collecting information or 'window shopping.'"Georgia Association Of Business Brokers [5]

Weak Marketing and Negotiation Skills can further undermine the sale. CPAs often lack the ability to create compelling marketing materials that highlight a business’s strengths and growth potential. Similarly, their limited experience in deal structuring and managing multiple offers can lead to poor negotiation outcomes, leaving value untapped.

Time Constraints are another issue. CPAs are usually juggling multiple clients and responsibilities, which makes it difficult for them to dedicate the time and focus required for a successful business sale. This can delay the process and reduce its overall effectiveness.

Additionally, insufficient buyer screening by CPAs can waste time on unqualified prospects and increase the risk of mishandling sensitive business information.

CPA vs. Business Broker: A Side-by-Side Look

Here’s a quick comparison of how CPAs and business brokers stack up when it comes to key aspects of selling a business:

Capability	CPA	Business Broker
Valuation Approach	Relies on past financial data and standard multiples	Uses market-based analysis with industry benchmarks and buyer demand
Buyer Network	Limited personal contacts	Extensive database of qualified buyers and investors
Marketing Materials	Basic financial and tax documents	Professional presentations showcasing strategic strengths
Confidentiality Protection	Standard legal agreements	Advanced training with discreet marketing and buyer screening
Negotiation Experience	Basic contract review	Skilled in deal structuring and managing complex negotiations
Time Dedication	Divided attention across multiple clients	Full-time focus on the sales process

The gaps in expertise and resources between CPAs and business brokers can lead to longer time on the market, missed opportunities, and ultimately, sales that fall short of their true potential.

Why You Need a Certified Business Broker for Successful Sales

Selling a lower mid-market business requires more than just financial know-how - it demands the expertise of certified business brokers. These professionals bring market insights, strong negotiation skills, and valuable industry connections to the table, all of which can make the difference between an average sale and a truly successful exit.

Getting Higher Value and Smoother Sales

Certified brokers offer a range of services designed to maximize the value of your business while ensuring a seamless sales process:

Market Insights and Strategic Marketing: Brokers know how to position your business effectively in the market. They craft detailed marketing packages that go beyond financial data, showcasing your business's growth potential and competitive advantages.
Buyer Qualification: One of the biggest challenges in selling a business is finding the right buyer. Brokers quickly identify serious, qualified buyers, protecting your sensitive information and streamlining negotiations.
Expertise in Deal Structuring: Unlike CPAs, brokers specialize in structuring deals that not only secure favorable terms but also maximize your net proceeds while minimizing risks.
Process Management: Selling a business involves coordinating with multiple professionals, including attorneys, accountants, and lenders. Brokers ensure the process stays on track, addressing potential issues before they become major obstacles.

These skills and services provide the foundation for a successful sale, making certified brokers an essential partner in the process.

God Bless Retirement: Supporting Your Business Goals

God Bless Retirement takes these brokerage capabilities to the next level, combining expert market analysis with personalized service. Specializing in businesses with EBITA under $25 million, the firm offers a success-based, full-service approach aimed at achieving your goals.

Certified Business Valuations: Accurate pricing is critical for a successful sale. God Bless Retirement provides certified valuations based on current market trends and buyer demand, which can also support estate planning, partnership discussions, and strategic planning.
Comprehensive Buyer Network: The firm connects you with a wide range of qualified buyers, including strategic investors, private equity groups, and individual buyers focused on lower mid-market opportunities.
Professional Network Access: Beyond finding buyers, God Bless Retirement offers access to a network of CPAs, financial planners, and private equity professionals who assist with transaction coordination and post-sale planning.

Confidentiality is a cornerstone of their process. They offer a free preliminary valuation and consultation, with listing services operating on a success fee basis - meaning you only pay if your deal closes successfully.

With their deep expertise and commitment to aligning their success with yours, God Bless Retirement helps you navigate the complexities of selling your business while avoiding common pitfalls often encountered with less experienced professionals.

Conclusion: Picking the Right Partner for Business Success

Selling a lower mid-market business is no small feat - it takes the combined efforts of financial experts and market-savvy professionals to get it right. While your CPA ensures precise financial statements and effective tax strategies, a certified business broker brings the market expertise, negotiation tactics, and buyer connections that can directly influence your sale price and overall success. Relying solely on a CPA could mean missing out on critical market opportunities.

As highlighted earlier, CPAs are vital for financial clarity, but brokers are the ones who elevate market performance. In fact, studies show that broker-assisted sales often achieve 10-30% higher sale prices, thanks to their ability to attract a larger pool of buyers, craft professional marketing strategies, and negotiate effectively [6]. This process isn’t just about finding a buyer - it’s about creating competition among qualified prospects while maintaining the confidentiality needed to protect your business.

A collaborative approach that integrates CPAs for financial accuracy, attorneys for legal matters, and brokers for market strategy offers the best chance of success. This team effort minimizes risks and maximizes your chances of meeting both your financial and retirement goals. It's the kind of synergy that ensures every aspect of your sale is handled with precision and care.

God Bless Retirement specializes in supporting businesses with EBITA under $25 million, working closely with your CPA and legal team from the initial valuation to the final closing. Their coordinated approach aligns their success with yours, ensuring every step is tailored to achieve the best possible outcome.

Your business represents years of hard work and is likely one of your most valuable assets. Choosing the right partner isn’t just about closing a sale - it’s about securing your financial legacy. The difference between general financial expertise and the specialized skills of a certified broker can be the difference between an average result and the exceptional outcome you deserve.

Don’t leave your business’s future to chance. Work with experienced brokers who understand the nuances of lower mid-market transactions and have the tools, connections, and know-how to deliver results that support your long-term goals.

FAQs

Why should I work with both a CPA and a business broker when selling my business?

When selling a business, having both a CPA and a business broker on your side is incredibly important because they each bring unique expertise to the process. A CPA handles the financial details - making sure your business is properly valued, your taxes are managed correctly, and all necessary regulations are met. Meanwhile, a business broker focuses on presenting your business to potential buyers, keeping the sale confidential, and negotiating the best possible deal.

Together, these professionals cover all the critical bases. The CPA ensures financial accuracy and compliance, while the broker maximizes your business’s appeal and handles the negotiation process. This combination not only lowers risks but also boosts the likelihood of a smooth, successful sale. It’s a partnership that ensures no aspect of the transaction is overlooked.

How do business brokers protect confidentiality during a sale?

When it comes to the sale of a business, brokers take careful measures to protect confidentiality every step of the way. One key tool they use is non-disclosure agreements (NDAs), which legally bind all parties to handle sensitive information with care. Beyond that, brokers rely on secure communication channels, such as encrypted emails and virtual data rooms, to ensure business details remain protected.

Another important step is thoroughly vetting potential buyers. Brokers share essential information only with individuals who are both qualified and trustworthy. By tightly controlling access and keeping the process discreet, they help safeguard the business and its reputation from unnecessary risks.

What are the risks of using only a CPA to sell your business?

Relying only on a CPA to sell your business can create significant hurdles. While CPAs excel in accounting and tax-related tasks, they often lack the specialized skills required for business valuation, marketing your business effectively, and handling confidential negotiations. These are essential elements for getting the best price and terms when selling.

Without the proper expertise and strategies, you risk undervaluing your business, overlooking qualified buyers, or facing extended sale timelines. These issues can lead to lower sale prices, less favorable terms, or even a failed transaction. Working with a certified business broker provides you with a professional who understands the intricacies of the sales process and is equipped to guide you toward the best possible outcome.