CBB Marketing & Deal Structuring 1

Question 1

What is a key purpose of a Confidential Business Review (CBR)?

Accepted Answer

To provide in-depth business details to screened buyers

Answer

A CBR provides detailed information about the business to qualified buyers who have signed an NDA.

Question 2

What is typically the first step in marketing a business for sale?

Accepted Answer

Conduct a business valuation

Answer

Conducting a valuation helps establish a realistic asking price and builds the foundation for marketing efforts.

Question 3

Why might a seller offer financing in a business sale deal?

Accepted Answer

To make the deal more appealing and accessible

Answer

Seller financing can make the deal more attractive to buyers and expand the buyer pool.

Question 4

What should a broker verify before listing a business?

Accepted Answer

Financial documents and owner disclosures

Answer

Verifying financial documents ensures that all listing information is accurate and credible to potential buyers.

Question 5

Which factor is most important when structuring a win-win deal?

Accepted Answer

Alignment of buyer and seller objectives

Answer

Understanding both buyer and seller goals ensures that the transaction meets everyone's expectations.

(CBB) Certified Business Brokers Practice Test