In late 2023 I purchased my first small business, only to find that the seller had substantially misrepresented its financial status. From the date that I assumed ownership of the business, operating expenses in each category proved to be 3-4 times higher than what the seller had advised through various documents provided and other representations made prior to the transaction. By underreporting operating expenses, the seller was able to represent the business as profitable when it was actually losing money by a significant margin. I scheduled a consultation with Steven Sherman to assess if there was a basis for legal action. He wrote a demand letter to the seller, which was sent in mid-2025 after I had managed to sell off the business at a minimal price. While demand letters are often ignored, the seller did respond in this case and agreed to mediation. Steve prepared an extensive mediation brief to summarize the case. The document was thorough and precise in addressing the misrepresentations that induced the transaction. We presented a strong case at mediation, and the opposing side agreed to a six-figure settlement amount. Steve represented my case meticulously, and I was able to stand up to a dishonest and unethical business broker.
Analyzing Data...