How verification works

What NextOwner checks before a listing goes live, against which documents, who decides, and what we do not check.

The tolerances, the review target and the time limits below are read from NextOwner’s live verification settings when this page loads, so they are the rules in force today.

On this page

The six stages
What we check
What each figure tells you
When the numbers do not match
Who decides
How long a check stands
How buyers are checked
What we do not check
The report

The six stages

Every listing passes through the same six stages, in this order. A listing that stops at any stage does not go live.

Documents received
Done by, The seller
Uploads 3 years of tax returns and profit and loss statements, 12 consecutive months of bank statements, the business's formation document, a photo ID and a selfie. Files are encrypted as they arrive.
Software reads the documents
Done by, Software
Reads each document and records what is printed on it: revenue, expenses, owner pay, deposits, names, dates and tax IDs. A document it cannot read goes to an analyst, who types the figures in by hand.
Numbers reconciled
Done by, Software
Compares the seller's figures with the documents, and the documents with each other, year by year.
Risk and financial analysis
Done by, Software
Looks for files that were edited after they were issued, statements that do not add up, the same file uploaded by another account, and anything that differs from what the seller told us. Each one is flagged for the analyst.
Analyst review
Done by, A verification analyst
Opens the documents behind every published figure, reads every flag and the seller's explanations, and approves, sends back or declines the listing.
Approved and published
Done by, The seller
Chooses when the approved listing goes live. It carries a numbered report of what was checked, against which documents, and when.

What we check

Five things, for every listing. Beside each one is how its checks read on a report, with example figures.

Identity and the right to sell

The seller photographs a government photo ID and takes a selfie. A member of NextOwner’s compliance team compares the two. The name on the ID has to match the seller’s account and the owner named on the business’s tax return or formation document.

Someone selling for an owner, such as an officer or a broker, uploads a letter signed by the owner that authorizes the sale.

Checked against

Government photo ID and selfie, seen only by compliance staff
The filed tax return and the formation document
A signed authorization to sell, when the seller is not the owner

Identity and ownership

2 of 2 passed

Seller's identity checked against government photo ID
Passed
Photo ID and selfie compared by a member of NextOwner's compliance team in October 2026.
Seller's ownership compared with the filed tax return
Passed
The seller is named as an owner on the filed tax return, and the ownership share they gave agrees with it.
Checked against: Filed tax return

Example of how these checks read on a report.

The business exists

The legal name the seller gives has to agree with the name printed on the formation document, the tax returns and the bank statements. The tax ID on the returns has to match the one the seller entered. The business’s exact name and address stay private until the seller approves a buyer’s NDA.

Checked against

Formation or registration document
Tax ID confirmation letter, when provided
Filed tax returns and bank statements

Document integrity

2 of 2 passed

Business name agrees across the documents
Passed
The business name printed on the tax returns, bank statements and formation document agrees with the legal name the seller gave.
Checked against: 3 filed tax returns, 12 bank statements and the formation document
Bank statements are continuous and add up, 12 months
Passed
12 consecutive monthly bank statements, January to December 2025. Each statement's totals add up, and each month opens at the balance the previous month closed at.
Checked against: 12 bank statements

Example of how these checks read on a report.

Revenue, matched three ways

For each of the last 3 fiscal years, the revenue the seller entered is compared with the filed tax return. The return is then compared with the profit and loss statement, and with the money that actually arrived: deposits across 12 consecutive monthly bank statements, less transfers, loans, owner contributions and refunds.

The revenue we publish for a year is the figure on that year’s tax return.

Checked against

Filed tax returns
Profit and loss statements
12 consecutive monthly bank statements

Financials

3 of 3 passed

Revenue 2025: seller's figure compared with the filed tax return
Passed
The seller's revenue figure agrees with the filed tax return (Form 1120-S).
Checked against: Filed tax return
Revenue 2025: profit and loss statement compared with the filed tax return
Passed
Revenue on the profit and loss statement agrees with the filed tax return: the two are 0.4% apart.
Checked against: Filed tax return and profit and loss statement
Revenue 2025: bank deposits compared with the filed tax return
Passed, with a note
The total deposited across 12 bank statements for the 12 months, less transfers, loan proceeds, owner contributions and refunds, is 3.1% below revenue on the filed tax return. A NextOwner verification analyst reviewed this result.
Checked against: Filed tax return and 12 bank statements

Example of how these checks read on a report.

Cash flow and add-backs

Cash flow to the owner (also called seller’s discretionary earnings) is rebuilt from each tax return: net income, plus one owner’s pay, interest, depreciation and amortization.

Anything else the seller adds back, such as a one-time repair or a family member’s wages, is listed item by item. A verification analyst accepts or rejects each one with a note. Rejected add-backs do not count, and the cash flow we publish is the rebuilt figure.

Checked against

Filed tax returns
The seller's itemized add-backs, each with its evidence

Financials

1 of 1 passed

Cash flow (SDE) 2025: seller's figure compared with the filed tax return
Passed
The seller's cash flow figure agrees with the figure rebuilt from the filed tax return (net income plus one owner's pay, interest, depreciation and amortization, plus add-backs a NextOwner analyst accepted): the two are 1.2% apart.
Checked against: Filed tax return

Example of how these checks read on a report.

Listing details

What the listing says has to agree with the documents: the year the business started, the number of employees, the rent and the date the lease ends. The public description may not name the business, and it may not claim anything the documents do not support.

Checked against

Formation document
Payroll reports, or wages on the tax return
The lease

Listing details

3 of 3 passed

Year established compared with the formation document
Passed
The year established agrees with the formation document on file.
Checked against: Formation document
Monthly rent compared with the lease
Passed
The monthly rent the seller gave agrees with the base rent in the lease on file.
Checked against: Lease
Employee count compared with payroll records
Passed
The employee count agrees with the most recent payroll report on file, allowing for owners on the payroll and ordinary turnover.
Checked against: Payroll report

Example of how these checks read on a report.

What each figure tells you

Every number we publish carries its evidence tier beside it, on the listing, on its chart and in its report. There are three tiers.

Document checked

Matched to documents the seller uploaded, which were read by software and checked by a NextOwner analyst.

Revenue and cash flow for each year matched to a filed return, and facts such as the rent or the year the business started when they agree with a document on file.

Seller stated

Entered by the seller. NextOwner has not checked this figure.

The asking price, always, because there is nothing to check it against. Also any figure that could not be matched to a document. Treat these as the seller's claim.

Matched at source

Pulled directly from the bank, tax authority or accounting system with the seller's permission.

Not in use yet. No figure on NextOwner carries this tier today.

How buyers are checked

Sellers decide who sees their business, so they see who is asking. A buyer's profile shows what was checked, and when.

Email: Confirmed with a code before a buyer can message a seller or sign an NDA.
Photo ID: A photo ID and a selfie, compared by the compliance team. Sellers can require it before a buyer may ask for access. The seller sees that the ID was checked and on what date, never the ID itself.
Proof of funds: A statement that shows the funds, dated within the last 90 days, checked by the compliance team. Sellers see a dated band, such as $500K to $1M, never the balance. The band shows as current for 90 days.
The NDA: Signed by typing the name on the account. We keep the exact text that was signed, with a fingerprint of it, so either side can see what was agreed.

Photo IDs, selfies and proofs of funds are deleted 90 days after the check is decided. The record of what was checked, and when, is kept.

What we do not check

Verification answers one question: do the listing's identity, ownership and headline figures agree with documents? Much of what matters in a purchase is outside it.

How the business will perform after you buy it
Whether customers, suppliers and staff will stay
Debts or disputes the seller did not disclose
The physical condition of equipment, inventory and premises
Anything labelled Seller stated

Every report carries this statement, word for word:

This report records what NextOwner checked, against which documents, on the date shown. It is not an audit, an appraisal or a guarantee. Do your own due diligence with your own advisers before you buy.

See it on a real listing

Every live listing shows its figures with their tiers, and links to its report.

Browse businesses

How verification works

What NextOwner checks before a listing goes live, against which documents, who decides, and what we do not check.

The tolerances, the review target and the time limits below are read from NextOwner’s live verification settings when this page loads, so they are the rules in force today.

On this page

The six stages
What we check
What each figure tells you
When the numbers do not match
Who decides
How long a check stands
How buyers are checked
What we do not check
The report

The six stages

Every listing passes through the same six stages, in this order. A listing that stops at any stage does not go live.

Documents received
Done by, The seller
Uploads 3 years of tax returns and profit and loss statements, 12 consecutive months of bank statements, the business's formation document, a photo ID and a selfie. Files are encrypted as they arrive.
Software reads the documents
Done by, Software
Reads each document and records what is printed on it: revenue, expenses, owner pay, deposits, names, dates and tax IDs. A document it cannot read goes to an analyst, who types the figures in by hand.
Numbers reconciled
Done by, Software
Compares the seller's figures with the documents, and the documents with each other, year by year.
Risk and financial analysis
Done by, Software
Looks for files that were edited after they were issued, statements that do not add up, the same file uploaded by another account, and anything that differs from what the seller told us. Each one is flagged for the analyst.
Analyst review
Done by, A verification analyst
Opens the documents behind every published figure, reads every flag and the seller's explanations, and approves, sends back or declines the listing.
Approved and published
Done by, The seller
Chooses when the approved listing goes live. It carries a numbered report of what was checked, against which documents, and when.

What we check

Five things, for every listing. Beside each one is how its checks read on a report, with example figures.

Identity and the right to sell

Someone selling for an owner, such as an officer or a broker, uploads a letter signed by the owner that authorizes the sale.

Checked against

Government photo ID and selfie, seen only by compliance staff
The filed tax return and the formation document
A signed authorization to sell, when the seller is not the owner

Identity and ownership

2 of 2 passed

Seller's identity checked against government photo ID
Passed
Photo ID and selfie compared by a member of NextOwner's compliance team in October 2026.
Seller's ownership compared with the filed tax return
Passed
The seller is named as an owner on the filed tax return, and the ownership share they gave agrees with it.
Checked against: Filed tax return

Example of how these checks read on a report.

The business exists

Checked against

Formation or registration document
Tax ID confirmation letter, when provided
Filed tax returns and bank statements

Document integrity

2 of 2 passed

Business name agrees across the documents
Passed
The business name printed on the tax returns, bank statements and formation document agrees with the legal name the seller gave.
Checked against: 3 filed tax returns, 12 bank statements and the formation document
Bank statements are continuous and add up, 12 months
Passed
12 consecutive monthly bank statements, January to December 2025. Each statement's totals add up, and each month opens at the balance the previous month closed at.
Checked against: 12 bank statements

Example of how these checks read on a report.

Revenue, matched three ways

The revenue we publish for a year is the figure on that year’s tax return.

Checked against

Filed tax returns
Profit and loss statements
12 consecutive monthly bank statements

Financials

3 of 3 passed

Revenue 2025: seller's figure compared with the filed tax return
Passed
The seller's revenue figure agrees with the filed tax return (Form 1120-S).
Checked against: Filed tax return
Revenue 2025: profit and loss statement compared with the filed tax return
Passed
Revenue on the profit and loss statement agrees with the filed tax return: the two are 0.4% apart.
Checked against: Filed tax return and profit and loss statement
Revenue 2025: bank deposits compared with the filed tax return
Passed, with a note
The total deposited across 12 bank statements for the 12 months, less transfers, loan proceeds, owner contributions and refunds, is 3.1% below revenue on the filed tax return. A NextOwner verification analyst reviewed this result.
Checked against: Filed tax return and 12 bank statements

Example of how these checks read on a report.

Cash flow and add-backs

Cash flow to the owner (also called seller’s discretionary earnings) is rebuilt from each tax return: net income, plus one owner’s pay, interest, depreciation and amortization.

Checked against

Filed tax returns
The seller's itemized add-backs, each with its evidence

Financials

1 of 1 passed

Cash flow (SDE) 2025: seller's figure compared with the filed tax return
Passed
The seller's cash flow figure agrees with the figure rebuilt from the filed tax return (net income plus one owner's pay, interest, depreciation and amortization, plus add-backs a NextOwner analyst accepted): the two are 1.2% apart.
Checked against: Filed tax return

Example of how these checks read on a report.

Listing details

Checked against

Formation document
Payroll reports, or wages on the tax return
The lease

Listing details

3 of 3 passed

Year established compared with the formation document
Passed
The year established agrees with the formation document on file.
Checked against: Formation document
Monthly rent compared with the lease
Passed
The monthly rent the seller gave agrees with the base rent in the lease on file.
Checked against: Lease
Employee count compared with payroll records
Passed
The employee count agrees with the most recent payroll report on file, allowing for owners on the payroll and ordinary turnover.
Checked against: Payroll report

Example of how these checks read on a report.

What each figure tells you

Every number we publish carries its evidence tier beside it, on the listing, on its chart and in its report. There are three tiers.

Document checked

Matched to documents the seller uploaded, which were read by software and checked by a NextOwner analyst.

Revenue and cash flow for each year matched to a filed return, and facts such as the rent or the year the business started when they agree with a document on file.

Seller stated

Entered by the seller. NextOwner has not checked this figure.

The asking price, always, because there is nothing to check it against. Also any figure that could not be matched to a document. Treat these as the seller's claim.

Matched at source

Pulled directly from the bank, tax authority or accounting system with the seller's permission.

Not in use yet. No figure on NextOwner carries this tier today.

What each figure tells you

Every number we publish carries its evidence tier beside it, on the listing, on its chart and in its report. There are three tiers.

Document checked

Matched to documents the seller uploaded, which were read by software and checked by a NextOwner analyst.

Revenue and cash flow for each year matched to a filed return, and facts such as the rent or the year the business started when they agree with a document on file.

Seller stated

Entered by the seller. NextOwner has not checked this figure.

The asking price, always, because there is nothing to check it against. Also any figure that could not be matched to a document. Treat these as the seller's claim.

Matched at source

Pulled directly from the bank, tax authority or accounting system with the seller's permission.

Not in use yet. No figure on NextOwner carries this tier today.

When the numbers do not match

A seller's figure and a document rarely agree to the dollar. These are the tolerances an analyst works to, measured as the gap between the two.

Within 2%

Passes.

Treated as timing: cash against accrual accounting, or deposits still in transit at the end of the year.

For exampleWithin 1.2% of the filed tax return

2% to 5%

Passes only with a note.

The seller has to explain the gap. A verification analyst may accept the explanation, and the report then says the check passed, with a note.

For example3.5% below the filed tax return

More than 5%

Does not pass.

The figure cannot be published as Document checked. The analyst asks the seller for a correction or the missing documents, or declines the listing.

For example8% below the filed tax return

What happens next

The analyst sends the listing back with a request the seller can read, in plain words. The seller answers it or uploads what is missing, and the listing goes through the checks again.
Where the seller's number differs from the documents, the listing publishes the documented figure and shows the seller's number beside it.
A listing whose figures cannot be matched to the documents is not published. Neither is one whose documents cannot be accepted as unaltered copies, or whose seller cannot show the right to sell.

Who decides

People make every decision. Software prepares the file; it never approves or declines anything.

A verification analyst: Approves, sends back or declines each listing, after opening the documents behind every figure that will be published and reading every flag. Before approving, the analyst confirms five statements about what they checked, and the decision is recorded in NextOwner’s log of staff actions.
A second approver: Listings with an asking price of $2,000,000 or more need a second approval, from an administrator who is not the analyst who approved it first, before they can go live.
The compliance team: Compares each seller’s and buyer’s photo ID with their selfie, and checks buyers’ proof of funds. Only compliance staff and administrators can open identity documents, and every time they do is logged.
Our target: An analyst aims to decide within 2 business days of a listing reaching review. A listing that needs more from the seller waits until the seller replies.

How long a check stands

A report describes the documents on the date it was issued. Two rules keep listings from going stale.

180 days

Each verification stands for 180 days

The report shows the date it stops standing. After that the listing comes off the marketplace until the seller sends current documents and an analyst checks them again.

30 days

Still for sale, every 30 days

The seller confirms that the business is still for sale and that nothing material has changed. Once a confirmation is due, the seller has 7 days to give it, with reminders 7, 3 and 1 days before the listing would be paused. Then it is paused.

How buyers are checked

Sellers decide who sees their business, so they see who is asking. A buyer's profile shows what was checked, and when.

Email: Confirmed with a code before a buyer can message a seller or sign an NDA.
Photo ID: A photo ID and a selfie, compared by the compliance team. Sellers can require it before a buyer may ask for access. The seller sees that the ID was checked and on what date, never the ID itself.
Proof of funds: A statement that shows the funds, dated within the last 90 days, checked by the compliance team. Sellers see a dated band, such as $500K to $1M, never the balance. The band shows as current for 90 days.
The NDA: Signed by typing the name on the account. We keep the exact text that was signed, with a fingerprint of it, so either side can see what was agreed.

Photo IDs, selfies and proofs of funds are deleted 90 days after the check is decided. The record of what was checked, and when, is kept.

What we do not check

Verification answers one question: do the listing's identity, ownership and headline figures agree with documents? Much of what matters in a purchase is outside it.

How the business will perform after you buy it
Whether customers, suppliers and staff will stay
Debts or disputes the seller did not disclose
The physical condition of equipment, inventory and premises
Anything labelled Seller stated

Every report carries this statement, word for word:

This report records what NextOwner checked, against which documents, on the date shown. It is not an audit, an appraisal or a guarantee. Do your own due diligence with your own advisers before you buy.

The report

Every verified listing links to a numbered report. Anyone can look up a report number to see whether it is current.

The seal of report NO-2026-000062, issued Nov 6, 2026.

Under the seal, every report sets out

A two-sentence summary of what was matched to what
Every check, its result and the documents it ran against
Every published figure with its evidence tier, period and the date it was checked
What was not checked
A fingerprint (SHA-256) of the whole report, so a copy can be compared with the original

Check a report Look up NO-2026-000062

See it on a real listing

Every live listing shows its figures with their tiers, and links to its report.

Browse businesses