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Small Business Intelligence by Brick & Mortar

Broker Diligence Prep

broker_diligence_prep
Read-only

Pre-diligence framework for a business broker or buyer evaluating a target: SDE framing (why the discretionary-earnings figure, not net income or raw EBITDA, is the relevant number, and what typically gets added back), a category multiple range the model must research fresh and date-stamp (never a hardcoded table), a public-signal red-flag checklist run before any financials are shared, and a prioritized seller-question list built from the specific gaps the research actually surfaces.

Example invocations:

  • "Prep me for diligence on a brewery taproom listed in Minneapolis, MN"

  • "What questions should I ask the seller of a hair salon in Wichita, KS before I make an offer?"

  • "This restaurant is asking $650K — what red flags should I check before taking that seriously?"

  • "I'm looking at a nail salon in Tampa, FL asking $310K — sanity-check that against category multiples before I meet the seller"

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
categoryNoCategory if known — determines the relevant SDE-multiple range.
city_metroYesCity + state/region, e.g. 'Denver, CO'.
asking_priceNoListed asking price, if known — used to sanity-check against the multiple range, never to validate it.
business_nameYesThe target business's name.

Output Schema

TableJSON Schema
NameRequiredDescriptionDefault
toolYes
noticeNoPresent ONLY when the request was denied by usage policy instead of executed. When present, every other field is an empty placeholder and must not be reported as a framework.
caveatsYes
subjectNo
frameworkYes
output_schemaYes
quality_rubricYes
research_procedureYes

TDQS

A4.2/5.0
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already indicate readOnlyHint=true and destructiveHint=false, covering the safety profile. The description adds meaningful behavioral context: multiples must be researched fresh and date-stamped, never hardcoded, and the seller-question list is built from gaps the research surfaces. This goes beyond the structured annotations without contradicting them.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is front-loaded with a precise definition, followed by detailed component breakdown and then example invocations. It is somewhat long but every section contributes value, and the examples clarify abstract concepts. It earns its length without being bloated.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a tool with an output schema, the description need not explain return values, and it provides a thorough account of purpose, inputs through examples, and internal methodology. It gives an agent everything necessary to decide when and how to invoke it, including the types of information to gather before calling.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

The input schema already covers all four parameters with descriptions, giving 100% schema_description_coverage. The description reinforces the role of category (determines multiple range) and asking_price (used for sanity-checking), but these add little beyond what the schema provides. Baseline of 3 is appropriate given the strong schema coverage.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description clearly states the tool produces a pre-diligence framework for brokers or buyers, enumerating specific components (SDE framing, category multiple range, red-flag checklist, seller questions). Example invocations ground the purpose in concrete user needs, making it easy to distinguish from vague or tautological definitions. Though it doesn't explicitly differentiate from siblings, the unique combination of elements makes the function unmistakable.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Example invocations explicitly demonstrate when to use the tool: preparing for diligence on a new target, generating seller questions, checking red flags, and sanity-checking asking prices against multiples. This provides clear context, but there are no explicit 'when not to use' statements or direct comparisons to sibling tools like pricing_benchmark or market_opportunity_scan.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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TDQS

A4.2/5.0
Disambiguation4/5

Most tools target clearly distinct tasks — teardowns, competitor mapping, pricing, reviews, visibility, and data lookup are all separable. The main ambiguity is that business_teardown is a comprehensive single-business tool that overlaps with local_visibility_audit, review_intelligence, and pricing_benchmark, and twin_cities_datasets vs twin_cities_records could be confused at first glance.

Naming Consistency4/5

Names are almost uniformly descriptive snake_case noun phrases like business_teardown, competitor_landscape, and market_opportunity_scan. The exceptions are compose_report and request_a_feature, which are verb-first, creating a minor but noticeable convention break.

Tool Count5/5

Twelve tools is well within the ideal range for a server with this scope. Each tool covers a meaningful part of the small-business investigation workflow, from research planning and data lookup to analysis, diligence, and report assembly.

Completeness4/5

The surface covers the full investigative lifecycle: data sourcing, market and competitor analysis, business teardown, pricing, reviews, local visibility, broker diligence, and client-ready reporting. Minor gaps exist around direct valuation/financial modeling and non-Twin-Cities dataset access, but data_source_atlas and request_a_feature help agents work around them.