What we verify, and in what order
Verification runs in levels. Each level adds scrutiny, and larger or more complex deals move further up the ladder before they list.
Level 1 — Identity and standing
- Business registration and good standing confirmed against the state or provincial registry.
- Ownership linkage — the person listing the business is tied to the legal entity that owns it.
- Lien and encumbrance search (UCC filings) so undisclosed debt against the assets surfaces early.
Level 2 — Financial reconciliation
The core of verification is a three-way reconciliation: reported earnings are cross-checked across tax returns, the profit-and-loss statement, and bank data. Add-backs are examined rather than accepted, and discrepancies are flagged with context instead of quietly smoothed over. Where a business holds professional or trade licenses, those are verified against the issuing body.
Level 3–4 — Deeper diligence for larger deals
Higher-value transactions add quality-of-earnings-style review and, where warranted, on-site inspection. The result is a verification record that lenders and buyers can rely on — which is what compresses the time from offer to close.
Why this mattersRoughly half of accepted offers on small businesses never reach closing, usually because diligence surfaces surprises. Verifying before the listing goes live moves those surprises to the front — where they can be resolved or priced, not discovered after an LOI.