Can I hold a broker responsible if they misrepresent my business to buyers?
Potentially, yes. A broker acting on your behalf is expected to present your business accurately, based on information you've provided and reasonable diligence on their part — not to invent figures, overstate performance, or make claims to buyers that aren't supported by your actual records. If a broker materially misrepresented your business in marketing materials or to a buyer directly, and that caused you harm (for example, a deal collapsing when a buyer discovered the truth, or exposure to a claim from a buyer who relied on the misstatement), that can support a claim against the broker.
The practical complication is proving what was actually said or represented, and separating a broker's honest error or reasonable summary of information you gave them from an actual misrepresentation. Keep your own records of what information you provided and when, and review marketing materials before they go out rather than after a problem surfaces — prevention is far more effective than a dispute after the fact. If you believe misrepresentation has already caused you harm, a Treadstone business lawyer can assess whether the facts support a claim and what remedies might be available.
Key takeaways
- A broker is expected to represent your business accurately, not overstate or invent information.
- Material misrepresentation that causes harm can support a claim against the broker.
- Proving exactly what was represented, and by whom, is often the practical challenge.
- Review marketing materials before they go out to prevent disputes rather than resolve them later.