Selling a business isn’t just a financial transaction—it’s often the emotional exit from years of hard work, long nights, and personal sacrifice. That’s why for small business owners in California, finding the right broker isn’t just helpful—it’s essential.

One name that comes up again and again among satisfied clients is Steve Sharp, founder of Sharp Business Brokers. With a background as a successful entrepreneur himself—and a long list of credentials including Certified Business Broker (CBB), Certified Business Intermediary (CBI), and decades of real-world experience—Sharp brings a rare combination of empathy, insight, and negotiation expertise to the business transfer process.

What makes Steve stand out isn’t just his impressive track record of hundreds of successful sales or the dozens of industries he’s worked in. It’s the way he treats each transaction: with patience, precision, and above all, integrity. Whether helping sell a salon, a med spa, or a $4.3 million event company, Steve approaches each deal with the same goal—to help the client exit smoothly and successfully, with confidence and peace of mind.

We sat down with Steve to learn more about his journey, how he built his firm from the ground up, and what business owners need to know if they’re thinking about selling in today’s market.

Steve’s Early Beginnings and Journey to Becoming a Leading California Business Broker

Before founding his own agency, Sharp Business Brokers, Steve Sharp built a reputation as one of California’s most trusted and accomplished business intermediaries—grounded in real experience, real entrepreneurship, and a sharp eye for value.

Steve began his career in the U.S. Navy, serving as a 3rd Class Petty Officer Radio Man (RM3). After his military service, he launched California Tan, the first tanning salon chain in San Diego, followed by West Coast Tanning Supplies, where he became a leading consultant and equipment supplier, setting up 90% of the tanning salons in the region.

After successfully exiting his businesses, Steve became JK Ergoline’s top national sales agent, earning #1 rankings across three categories: most tanning units sold, most spray tan units sold, and most financing deals closed.

In the business brokerage world, Steve quickly rose through the ranks at Business Opportunities Unlimited and First Choice Business Brokers San Diego, receiving accolades including Salesperson of the Year (2008), Top Sales Associate (Q2 2019), and Most Businesses Sold (2018).

Today, Steve is a Certified Business Intermediary (CBI), Certified Business Broker (CBB), and fully licensed Business Broker in California. In September 2023, he launched Sharp Business Brokers, a boutique agency specializing in helping small business owners sell smoothly and successfully. His career reflects decades of firsthand entrepreneurial insight, award-winning sales expertise, and a deep commitment to doing things the right way.

Interview with Steve Sharp

How did you get into M&A, and why did you choose to work in this field?

I got into business brokerage after selling my own company. I probably left a lot of money on the table, but I did secure a strong six-figure employment contract with the large company I sold to.

As that seven-year contract was coming to an end, I knew I needed to figure out my next move. I came across an article in the San Diego Union that said licensed real estate agents could make six figures selling businesses—with no weekend work—and I immediately knew it was a perfect fit.

When I started in 2007, I was the youngest in the office, but I had more real-world business experience than most of the agents. Having owned and operated small businesses myself, I understood firsthand what owners were going through when it came time to sell.

What was the most challenging deal you’ve worked on, and why?

There have been several but the one to comes to mind is a deal that myself and the seller both said we should write a book about. There were many obstacles that I don’t want to get into but the biggest was the landlord. He would literally disappear and took more than 6 months to get an executed lease.

What was the best deal or biggest company you’ve sold, and how did it go?

We operate as a Main Street Business Brokerage, specializing in small business sales—most of our deals are under $1 million, with an average around $500,000. My largest transaction to date was a $4.3 million deal, which went smoothly but required attorneys due to its complexity.

For most of our transactions, we use standardized forms provided by the California Association of Business Brokers (CABB), which helps streamline the process and often eliminates the need for costly attorney involvement. While we don’t provide legal or accounting advice, our process is designed to keep deals efficient and affordable for both buyers and sellers.

What are some early mistakes you made at the beginning of your career? What advice would you give your younger self?

One of my early mistakes was not staying fully focused. I shared an office with a couple of seasoned brokers, and one of them told me, “The number one thing this business requires is focus.”

At the time, I was still running a small marketing company managing SEO and AdWords for clients. It took me a while to realize I needed to let that go and commit entirely to business sales.

Many new agents try to do this work part-time, but that rarely works. There are natural lulls in deal flow, and you have to stay consistent and patient.

If I could give my younger self advice, it would be: go all in, stay focused, and trust the process.

Are there any specific industries where businesses are easier—or harder—to sell, and why?

Businesses that require special licenses—such as contracting companies or medical practices—can be more complex to sell due to regulatory requirements and licensing transfers.

That said, they’re often very solid businesses with strong cash flow, and I welcome the challenge. I have the experience and expertise to navigate these deals successfully and ensure a smooth transition for both parties.

No transaction is truly easy—every business has its nuances.

Is there any specific industry you focus on over others?

We’re industry-agnostic—we sell all types of businesses. At Sharp Business Brokers, we’ve built a team with diverse expertise. One agent specializes in restaurants, another in salons, and another focuses on the home services sector. That said, nearly every business we’ve sold was the first time we sold that exact type, and we’ve succeeded because we focus on fundamentals: clean financials, solid operations, and finding the right buyer. Our process works across industries.

What is the process of selling a business (in brief)?

Valuation & Preparation

• Review financials, normalize earnings, and determine a market-based asking price.
• Organize key documents (P&Ls, tax returns, leases, asset list, etc.).
• Listing & Confidential Marketing
• Create a confidential teaser and CIM.
• Market to qualified buyers without disclosing the business identity.

Buyer Screening & Offers

• Vet buyers for financial capability and fit.
• Negotiate terms via LOI (Letter of Intent) or APA (Asset Purchase Agreement).

Due Diligence

• Buyer reviews financials, contracts, leases, licenses, etc.
  Landlord approval, SBA financing, and escrow are typically initiated here.

Closing

• Finalize legal documents, transfer assets, and close escrow.
• Transition support (e.g., training or consulting) begins.

What is the most important advice you can share with business owners looking to sell their business?

Start preparing early—and treat the business like you’re going to own it forever.
Buyers pay top dollar for organized, profitable, and transferable businesses. The biggest mistake sellers make is waiting too long or checking out before the business is ready to sell.

Key Takeaways:

• Keep clean, verifiable financials—they make or break a deal.
• Don’t slow down just because you want out. Buyers look at recent trends.
• Plan your exit 1–2 years ahead if possible. You’ll have more control, better terms, and fewer surprises.

Bottom line: Run your business like you’re not selling—until it’s ready to sell. That’s how you maximize value and attract the right buyer

When is the “right” time to sell a business, and why?

The right time to sell is when your business is doing well—not when you’re burned out or in decline. Here’s why:

Strong Financials = Strong Valuation
Buyers and lenders pay more when revenue, profits, and growth are trending up.
If sales are declining, buyers will discount the price—or walk away entirely.

If you’re even thinking about selling in the next 12–24 months, it’s smart to start preparing now. You’ll have time to clean up the books, increase value, and avoid a rushed exit.

What mistakes should business owners avoid that could kill a deal?

Even great businesses can fall out of escrow if the seller makes the wrong move. Here are the most common deal-killing mistakes:

1. Hiding or Misrepresenting Information
Buyers will uncover the truth during due diligence.
Inaccurate financials, unreported income, or omitted liabilities are deal breakers and destroy trust.

2. Waiting Too Long to Prepare
Sloppy books, unclear employee records, or missing agreements slow things down—or stop the deal entirely.
Preparation matters. Clean documentation gives buyers confidence and accelerates the process.

3. Getting Greedy or Changing Terms Mid-Deal
Trying to raise the price or renegotiate after an offer is accepted sends red flags.
Deals often fall apart when sellers shift expectations late in the process.

4. Letting the Business Decline During Escrow
Buyers expect the business to remain stable or growing.
If revenue or customer service drops while the owner “checks out,” the buyer might walk—or ask for a price reduction.

5. Involving Too Many Unqualified Advisors
Well-meaning friends, attorneys, or CPAs unfamiliar with small business deals often derail negotiations.
Use professionals who understand business sales, not just contracts or tax law.

What three tips do you have for investors seeking a good business to buy?

1. Focus on Cash Flow, Not Hype

• Don’t fall in love with the product or brand—look at the discretionary earnings.
• A strong, steady cash flow with clean books beats a “cool” business every time.

2. Prioritize Transferable Operations

• Look for a business that doesn’t rely heavily on the current owner’s relationships, skills, or personality.
• The more systems and team in place, the easier it will be to take over and grow.

3. Be Ready to Act

• Good businesses don’t sit on the market long.
• Have your proof of funds, lender relationships, and decision-making criteria in place before you start shopping seriously.

Why should a business work with a broker instead of trying to sell on their own?

Selling a business is not like selling a house. It’s a complex, high-stakes process where one wrong move can cost you time, money, or the entire deal. Here’s why working with a broker or M&A advisor matters:

1. Confidentiality Protection
Brokers market the business without revealing its identity, protecting relationships with employees, customers, vendors, and competitors.

2. Buyer Screening
Most “buyers” aren’t qualified or serious.
A broker pre-qualifies buyers financially and strategically, saving the seller from wasting time with tire-kickers.

3. Accurate Pricing & Positioning
Brokers know how to value and position the business based on real market comps and lender expectations—not guesswork or emotion.

4. Deal Management
From negotiating terms to managing due diligence, brokers keep the deal on track and moving forward, reducing the risk of a broken deal.

5. Higher Likelihood of Closing
National stats show that sellers working with experienced brokers or advisors have a much higher chance of successfully closing, and often at a better price and structure.

6. Peace of Mind
The process is emotionally and logistically draining.
A broker handles the heavy lifting while you stay focused on running the business—which protects value and buyer confidence.

Bottom line: Trying to sell on your own often leads to a longer, more stressful, and less profitable outcome.
An experienced broker is your best shot at maximizing value and getting to the finish line.

 What are the biggest risks, challenges, or pitfalls business owners face when trying to sell on their own?

Wasting Time With Tire-Kickers.
Most “interested buyers” aren’t serious, aren’t financially qualified, or are just curious. They’ll drain your time, ask for sensitive information, and rarely make real offers.

We filter all of that out—screening buyers for financial capability, fit, and intent—so you only deal with real prospects.

How long does it typically take to sell a business?

Average time on market: 6 to 12 months—but it can vary depending on several factors.

Main Street businesses (under $1M price tag): Typically 6–9 months

Lower middle market ($1M–$5M): Often 9–12 months, sometimes longer

What percentage of businesses are successfully sold—and what can increase a seller’s chances of success?

20% to 30% of small businesses that go to market successfully sell.

Why So Few Sell:

• Overpriced Listings – Sellers often overvalue their business.
• Poor Financial Records – Lack of clean books kills deals.
• Owner Dependency – Businesses that can’t run without the owner are risky.
• Weak Cash Flow – Most buyers (and SBA lenders) won’t consider low-performing businesses.
• Lack of Preparation – Businesses that aren’t ready for due diligence often fall apart in escrow.

Factors That Improve Sell-Through Rate:

• Proper valuation by experienced brokers.
• Good financials and operational documentation.
• Motivated seller with realistic terms.
• Business fits SBA lending criteria (strong cash flow, clean tax returns, transferable operations).

 

Looking to Buy or Sell a Business?

In an industry where too many brokers treat businesses like listings instead of legacies, Sharp Business Brokers offers something refreshingly different: real care, real communication, and real results.

Their focus on small to midsize Main Street businesses means they understand the specific challenges that everyday business owners face—and their success rate proves it.

Whether you’re preparing to sell in the next year or simply exploring your options, getting to know a firm like Steve Sharp’s could make all the difference.

For those seeking smart, honest guidance in the world of business sales, we recommend talking to Sharp Business Brokers.

You can find out more about Steve and his firm at SharpBusinessBrokers.com or call (619) 454-1786.