Business Broker vs Marketplace: Which Is Better for Selling Your Business?

You've decided to sell your business, and now you're facing a choice: should you work with a business broker or list your business on an online marketplace like BizBuySell or BizQuest?

This is one of the most common questions I hear from business owners. Both approaches have their place, but they're fundamentally different. Understanding the differences helps you choose the right path for your situation.

"I listed my business on BizBuySell thinking I could handle it myself. After 6 months of tire kickers, low ball offers, and wasted time, I hired a broker. They sold it in 90 days for $200,000 more than my best marketplace offer. The marketplace listing fee was $99, but I left hundreds of thousands on the table."
Former manufacturing business owner, $1.5M sale

Online marketplaces make selling seem simple: create a listing, wait for buyers, negotiate, and close. But the reality is more complex. Business brokers bring expertise, buyer networks, and professional guidance that marketplaces can't provide. However, marketplaces can work for certain situations.

This guide compares business brokers versus marketplaces, helping you understand when each approach makes sense and what to expect from each.

What Are Business Marketplaces?

Business marketplaces are online platforms where you can list your business for sale. Popular platforms include:

• BizBuySell: Largest business marketplace with thousands of listings
• BizQuest: Another major marketplace with diverse inventory
• BusinessesForSale: International marketplace with U.S. listings
• LoopNet: Focuses on commercial real estate and businesses
• Flippa: Specializes in online businesses and digital assets

How marketplaces work:

1. Create a listing: You write a description, upload photos, and set an asking price
2. Pay listing fee: Typically $99 to $299 per month
3. Wait for inquiries: Buyers browse listings and contact you directly
4. Screen buyers yourself: You determine who's serious and qualified
5. Negotiate yourself: You handle all negotiations directly with buyers
6. Close yourself: You coordinate closing with attorneys and accountants

Marketplaces are essentially classified ads for businesses. They provide exposure but little else.

What Are Business Brokers?

Business brokers are licensed professionals who help you sell your business. They provide:

• Professional valuation: Determine what your business is actually worth
• Confidential marketing: Create professional materials while protecting your identity
• Buyer network: Access to qualified buyers you can't reach on your own
• Buyer screening: Filter out tire kickers and focus on serious buyers
• Expert negotiation: Handle complex negotiations to maximize your proceeds
• Deal structuring: Optimize deal terms for your situation
• Due diligence management: Coordinate the entire process
• Closing coordination: Work with attorneys, accountants, and lenders

Brokers work on commission, typically 5% to 12% of the sale price, paid only when the sale closes.

Business Broker vs Marketplace: Key Differences

Understanding the differences helps you choose the right approach:

Cost Comparison

Marketplaces:

• Listing fees: $99 to $299 per month
• Total cost: $600 to $3,600 for a 6 to 12 month listing
• No commission: You keep 100% of sale price (minus listing fees)

Business Brokers:

• No upfront fees: Most brokers work on commission only
• Commission: 5% to 12% of sale price (typically 8% to 10% for most businesses)
• Total cost: $40,000 to $120,000 on a $1 million sale (10% = $100,000)

At first glance, marketplaces seem cheaper. But consider:

A $1 million business might sell for:

• On marketplace: $900,000 (you handle everything, pricing mistakes, weak negotiation)
• With broker: $1,100,000 (professional valuation, competitive bidding, expert negotiation)

Net proceeds:

• Marketplace: $900,000 (minus $1,200 in listing fees) = $898,800
• Broker: $1,100,000 (minus $110,000 commission) = $990,000

Difference: $91,200 more with a broker, even after commission.

Buyer Quality and Quantity

Marketplaces:

• Public exposure: Anyone can see your listing
• High inquiry volume: Typically 20 to 50 inquiries
• Low quality: Most inquiries are tire kickers, unqualified buyers, or competitors
• Screening burden: You must screen every inquiry yourself
• Serious buyers: Typically 1 to 3 serious buyers after months of screening

Business Brokers:

• Confidential marketing: Your identity is protected
• Targeted outreach: Brokers reach out to qualified buyers directly
• Pre screened inquiries: Brokers filter before you ever talk to buyers
• Higher quality: Most inquiries are serious, qualified buyers
• Serious buyers: Typically 5 to 8 qualified buyers, often multiple offers

The difference: Brokers generate fewer but much higher quality inquiries. You spend time with serious buyers instead of screening tire kickers.

Time Investment

Marketplaces:

• Listing creation: 5 to 10 hours writing description, taking photos, setting price
• Responding to inquiries: 10 to 20 hours per week answering questions
• Screening buyers: 5 to 10 hours per week verifying qualifications
• Negotiations: 10 to 15 hours per week handling negotiations
• Due diligence: 15 to 20 hours per week coordinating and responding
• Total: 40 to 65 hours per week during active selling

Business Brokers:

• Initial meetings: 5 to 10 hours providing information
• Occasional questions: 2 to 5 hours per week answering broker questions
• Buyer meetings: 5 to 10 hours total meeting with pre screened buyers
• Due diligence support: 5 to 10 hours per week providing information
• Total: 12 to 25 hours per week, mostly during due diligence

The difference: Brokers handle 60% to 70% of the work, allowing you to focus on running your business.

Sale Timeline

Marketplaces:

• Average time to sale: 8 to 14 months
• Why longer: More time needed to find qualified buyers, longer negotiations, more deal failures

Business Brokers:

• Average time to sale: 6 to 12 months
• Why faster: Access to qualified buyers, professional marketing, expert negotiation, better deal structuring

The difference: Brokers typically sell businesses 2 to 4 months faster on average.

Sale Price

Marketplaces:

• Typical result: 85% to 95% of market value
• Why lower: Pricing mistakes, limited buyer pool, weak negotiation, accepting first reasonable offer

Business Brokers:

• Typical result: 100% to 115% of market value
• Why higher: Professional valuation, competitive bidding, expert negotiation, optimal deal structuring

The difference: Brokers typically achieve 10% to 20% higher sale prices.

Confidentiality

Marketplaces:

• Public listings: Anyone can see your business is for sale
• Identity exposure: Your business name and location are visible
• Employee risk: Employees may discover you're selling
• Competitor risk: Competitors can see your listing and financials
• Customer risk: Customers may find out and worry about service

Business Brokers:

• Confidential marketing: Your identity is protected
• Blind profiles: Listings don't reveal your business name
• Controlled access: Only qualified buyers see detailed information
• NDA protection: Buyers sign non disclosure agreements
• Employee protection: Employees typically don't find out

The difference: Brokers provide essential confidentiality protection that marketplaces can't offer.

Professional Expertise

Marketplaces:

• You provide: All expertise yourself
• Valuation: Online calculators or your own research
• Marketing: You write the listing and take photos
• Negotiation: You handle all negotiations
• Deal structure: You figure it out yourself
• Due diligence: You coordinate everything

Business Brokers:

• Broker provides: Professional expertise
• Valuation: Professional assessment using multiple methods
• Marketing: Professional materials created by experts
• Negotiation: Expert negotiation on your behalf
• Deal structure: Optimized for your situation
• Due diligence: Professional coordination and management

The difference: Brokers bring years of experience and expertise you don't have.

When Marketplaces Make Sense

Marketplaces can work in these situations:

Very Small Businesses (Under $100,000)

For very small businesses, broker fees may not make financial sense. However, even small businesses can benefit from broker consultation on valuation and deal structure.

Simple Businesses

If your business is straightforward with:

• Simple operations: Easy to understand business model
• No complex assets: Standard equipment and inventory
• Standard deal structure: Cash sale, no seller financing
• No special considerations: No environmental, regulatory, or other complexities

Marketplaces might work, though you'll still need professional help with valuation and contracts.

You Have Plenty of Time

If you have 20 to 30 hours per week to invest in selling and enjoy the process, marketplaces can work. But most business owners don't have this time or don't want to invest it.

You're an Experienced Seller

If you've sold multiple businesses before and understand the process, marketplaces might work. But even experienced sellers often use brokers to save time and ensure optimal results.

You Already Have a Buyer

If you have a specific buyer in mind (family member, employee, known buyer), you might not need broker marketing. However, you may still want broker help with valuation, deal structuring, and negotiations.

When Business Brokers Make Sense

Brokers make sense in most situations, especially:

Businesses Worth $250,000 or More

The complexity and stakes increase significantly with business value. For businesses worth $250,000 or more, broker expertise typically pays for itself.

Confidentiality Is Critical

If employees, customers, or competitors finding out could damage your business, brokers provide essential confidentiality protection that marketplaces can't offer.

You Need to Keep Running Your Business

If you need to keep your business running smoothly during the sale, brokers handle the selling work while you focus on operations.

Complex Transactions

If your sale involves:

• Multiple locations or entities
• Complex ownership structures
• Significant real estate
• Environmental considerations
• Regulatory compliance
• Seller financing
• International buyers

Brokers understand how to structure complex deals and navigate challenges.

You Want Maximum Sale Price

Brokers typically help sellers achieve 10% to 20% higher sale prices through professional valuation, competitive bidding, and expert negotiation.

You Lack Selling Experience

If you've never sold a business before, brokers bring expertise and help you avoid costly mistakes.

Real World Examples

Let me share some real examples to illustrate the differences:

Example 1: Restaurant Sale

Marketplace approach:

• Listing: Restaurant owner listed on BizBuySell for $450,000
• Timeline: 10 months from listing to closing
• Inquiries: 47 total inquiries, 3 serious buyers
• Final price: $420,000 (after negotiation)
• Time invested: 25 hours per week for 10 months = 1,000 hours
• Net proceeds: $420,000

Broker approach:

• Valuation: Broker valued at $480,000
• Timeline: 6 months from listing to closing
• Inquiries: 12 pre screened inquiries, 5 serious buyers, 3 offers
• Final price: $465,000 (competitive bidding)
• Time invested: 8 hours per week for 6 months = 192 hours
• Commission: $46,500 (10%)
• Net proceeds: $418,500

Result: Broker netted $1,500 less but saved 808 hours and closed 4 months faster. The owner valued the time savings and less stress.

Example 2: Manufacturing Business

Marketplace approach:

• Listing: Manufacturing business owner listed on BizQuest for $1.2 million
• Timeline: 14 months, deal fell through twice
• Inquiries: 62 total inquiries, 4 serious buyers
• Final price: $1.05 million (after two failed deals)
• Time invested: 30 hours per week for 14 months = 1,820 hours
• Net proceeds: $1.05 million

Broker approach:

• Valuation: Broker valued at $1.3 million
• Timeline: 8 months from listing to closing
• Inquiries: 18 pre screened inquiries, 6 serious buyers, 4 offers
• Final price: $1.25 million (competitive bidding)
• Time invested: 10 hours per week for 8 months = 320 hours
• Commission: $125,000 (10%)
• Net proceeds: $1.125 million

Result: Broker netted $75,000 more and saved 1,500 hours. The expertise in manufacturing business sales made a significant difference.

Example 3: Service Business

Marketplace approach:

• Listing: Service business owner listed on BizBuySell for $300,000
• Timeline: 9 months from listing to closing
• Inquiries: 38 total inquiries, 2 serious buyers
• Final price: $285,000
• Time invested: 20 hours per week for 9 months = 720 hours
• Net proceeds: $285,000

Broker approach:

• Valuation: Broker valued at $320,000
• Timeline: 5 months from listing to closing
• Inquiries: 15 pre screened inquiries, 4 serious buyers, 2 offers
• Final price: $310,000
• Time invested: 6 hours per week for 5 months = 120 hours
• Commission: $31,000 (10%)
• Net proceeds: $279,000

Result: Broker netted $6,000 less but saved 600 hours and closed 4 months faster. For this owner, the time savings was worth more than the $6,000 difference.

Hybrid Approach: Marketplace Listing With Broker Support

Some sellers use a hybrid approach:

How It Works

1. List on marketplace yourself: Create your own listing
2. Hire broker for specific services: Valuation, negotiation support, or deal structuring
3. Broker handles complex parts: You handle marketing, broker handles negotiations or due diligence

When It Makes Sense

• You have time for marketing: You can handle inquiries and initial screening
• You need negotiation help: You're comfortable with marketing but want expert negotiation
• You want to save on fees: Reduce broker commission by handling some work yourself

Limitations

• Still need confidentiality: Marketplace listings are public
• Limited buyer pool: Only reach marketplace buyers, not broker network
• Coordination complexity: Managing both approaches can be challenging

Making Your Decision

Here's a decision framework:

Choose Marketplace If:

• Your business is very small (under $100,000)
• Confidentiality isn't critical
• You have 20+ hours per week to invest
• You're an experienced seller
• You enjoy the selling process
• You're comfortable with lower sale prices

Choose Business Broker If:

• Your business is worth $250,000 or more
• Confidentiality is critical
• You need to keep running your business
• You lack selling experience
• Your transaction is complex
• You want maximum sale price
• You value your time and want less stress

The Bottom Line

For most business owners, brokers provide better results: higher sale prices, faster closings, and significantly less time investment. Even after commission, most sellers net more money than selling on marketplaces.

Marketplaces can work for very small, simple businesses where confidentiality isn't critical and you have plenty of time. But for most businesses, brokers provide better value.

What To Do Next

If you're considering selling your business, here's your action plan:

Step 1: Get a Professional Valuation

Understand what your business is worth before deciding on an approach. A professional valuation helps you:

• Set realistic expectations: Know what to expect from a sale
• Compare approaches: Understand what you might get with marketplace vs broker
• Make informed decisions: Choose the right approach for your situation

Get started: Use our free business valuation calculator for an initial estimate, then contact us for a detailed professional valuation.

Step 2: Evaluate Your Situation

Consider:

• Business value: Is it worth $250,000 or more?
• Confidentiality: Is it critical to protect?
• Time availability: Do you have 20+ hours per week?
• Experience: Have you sold a business before?
• Complexity: Is your transaction straightforward or complex?

Step 3: Interview Brokers

Even if you're considering marketplaces, interview brokers to:

• Understand options: Learn what brokers offer
• Compare approaches: See how brokers differ from marketplaces
• Get valuations: Professional assessments of your business value
• Make informed decisions: Choose based on complete information

Need help finding brokers? Contact us and we can discuss your situation and help you understand your options.

Step 4: Make Your Decision

Choose the approach that offers the best overall value for your situation. Consider:

• Net proceeds: What you'll net after all costs
• Time investment: How much time you can invest
• Stress level: How much stress you want to handle
• Confidence: Which approach gives you more confidence

Conclusion

Choosing between a business broker and a marketplace is one of the most important decisions you'll make when selling your business. Both approaches have their place, but they're fundamentally different.

Marketplaces provide exposure but little else. You handle everything yourself, from marketing to negotiations to closing. This can work for very small, simple businesses where confidentiality isn't critical and you have plenty of time.

Business brokers provide professional expertise, buyer networks, and comprehensive support. They handle most of the work while you focus on running your business. This typically results in higher sale prices, faster closings, and significantly less time investment.

For most business owners, brokers provide better results. Even after commission, most sellers net more money than selling on marketplaces. The expertise, buyer network, and professional guidance typically result in higher sale prices, faster closings, and less stress.

Ready to explore selling your business? Contact us for a free confidential consultation. We'll help you understand your options and determine whether a broker or marketplace makes sense for your situation.

Want to estimate your business value first? Use our free business valuation calculator to get an initial estimate based on your financials.

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Related Resources:

• What Is a Business Broker? - Complete guide to understanding business brokers
• Should I Use a Broker to Sell My Business? - Detailed guide on when brokers make sense
• What Is a Business Broker's Role in Selling A Business - Detailed article on what brokers do
• Business Broker vs DIY Sale - Compare brokers versus selling yourself

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About the Author

Jenesh Napit is an experienced business broker who has helped hundreds of business owners successfully sell their companies. With extensive experience across multiple industries, he understands the challenges sellers face and helps them navigate the sale process to achieve optimal outcomes.