Should I Use a Broker to Sell My Business? Complete Guide

You've decided to sell your business. Maybe you're ready to retire, want to pursue other opportunities, or need to exit for personal reasons. But now you're facing a critical question: should I use a business broker, or can I handle this myself?

After working with hundreds of business owners over the years, I've seen both approaches. Some sellers successfully navigate the process on their own. Many more struggle, waste months of time, and end up leaving money on the table. The difference often comes down to understanding when a broker adds real value versus when you might be able to handle it yourself.

"I tried selling my business myself for 10 months. I got 23 inquiries, but only 3 were serious buyers. Two of those made low ball offers, and the third backed out during due diligence. I finally hired a broker, and they sold it in 60 days for $180,000 more than my best offer. I wish I'd started with a broker."
Former retail store owner, $850K sale

The decision to use a broker isn't one size fits all. It depends on your business size, complexity, timeline, and your own experience with business transactions. This guide will help you understand when brokers make sense, what they cost, and how to choose the right one if you decide to go that route.

When You Should Use a Business Broker

Most business owners benefit from working with a broker, especially in these situations:

Your Business Is Worth $250,000 or More

The complexity and stakes increase significantly with business value. For businesses worth $250,000 or more, the expertise a broker brings typically pays for itself through higher sale prices and faster closings.

Why it matters:

• Valuation accuracy: Brokers understand market conditions and comparable sales. They can help you avoid pricing too high (which scares buyers) or too low (which leaves money on the table).
• Buyer network: Brokers have access to qualified buyers you can't reach on your own, including strategic acquirers, private equity groups, and serious investors.
• Deal complexity: Larger deals involve more complex negotiations, financing structures, and legal considerations. Brokers handle these professionally.

I worked with a manufacturing business owner who initially tried selling his $1.8 million business himself. After 8 months with no serious offers, he hired a broker. The broker identified the right buyer type (strategic acquirer), positioned the business correctly, and closed the deal in 90 days for $2.1 million. The broker's commission was $168,000, but the seller netted $132,000 more than he would have gotten on his own.

Confidentiality Is Critical

If employees, customers, or competitors finding out about your sale could damage your business, a broker provides essential confidentiality protection.

How brokers protect confidentiality:

• Blind marketing: They create marketing materials that highlight strengths without revealing your identity.
• Buyer screening: They require non disclosure agreements before sharing detailed information.
• Controlled access: They manage who sees what information and when, preventing leaks.

A restaurant owner I worked with needed to sell because of health issues, but couldn't let employees or customers know. The broker marketed the business confidentially, screened buyers carefully, and only introduced the seller to one qualified buyer who signed strict confidentiality agreements. The sale completed without any leaks.

You Need to Keep Running Your Business

Selling a business is a full time job. If you need to keep your business running smoothly during the sale process, a broker handles the selling work while you focus on operations.

Time breakdown:

• Without a broker: You'll spend 20 to 30 hours per week on selling activities including marketing, buyer screening, negotiations, and due diligence coordination.
• With a broker: You spend 5 to 10 hours per week, mostly answering questions and providing information. The broker handles the heavy lifting.

A service business owner I worked with couldn't afford to let operations slip during the sale. The broker handled all marketing, buyer communications, and negotiations while the owner kept the business running. The business maintained its performance, which actually increased its value during the sale process.

You Lack Selling Experience

If you've never sold a business before, the learning curve is steep. Common mistakes include:

• Pricing incorrectly: Too high scares buyers, too low leaves money on the table.
• Poor marketing: Generic listings don't attract serious buyers.
• Weak negotiations: Accepting first offers or not understanding deal structure.
• Due diligence mistakes: Not preparing properly or responding poorly to buyer questions.

Brokers bring years of experience and have seen what works and what doesn't. They help you avoid costly mistakes.

Your Transaction Is Complex

Some business sales are straightforward. Others involve:

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

Brokers understand how to structure complex deals and navigate the challenges that come with them.

You Want Maximum Sale Price

Brokers typically help sellers achieve 10 to 20 percent higher sale prices than selling on their own. This comes from:

• Professional valuation: Understanding true market value
• Strategic positioning: Highlighting strengths and addressing weaknesses
• Competitive bidding: Generating multiple offers
• Expert negotiation: Maximizing price and favorable terms

Even after broker commission, most sellers net more money than selling on their own.

When You Might Not Need a Broker

There are situations where selling without a broker might make sense:

Very Small Businesses (Under $50,000)

For very small businesses, broker fees may not make financial sense. However, even small businesses can benefit from broker guidance on valuation and deal structure, even if you handle marketing yourself.

You Already Have a Qualified Buyer

If you have a family member, employee, or known buyer who's serious and qualified, you might not need a broker's marketing services. However, you may still want broker help with valuation, deal structuring, and negotiations.

Simple Asset Sales

If you're selling just assets (equipment, inventory) rather than the entire business, the transaction may be simple enough to handle yourself. But even asset sales benefit from professional valuation and contract review.

You're an Experienced Seller

If you've sold multiple businesses before and understand the process, you might handle it yourself. But even experienced sellers often use brokers to save time and ensure they're not missing opportunities.

What Business Brokers Cost

Understanding broker fees helps you make an informed decision:

Typical Fee Structure

Broker fees typically range from 5% to 12% of the sale price, depending on business size:

• Under $500K: Typically 10% to 12%
• $500K to $2M: Typically 8% to 10%
• Over $2M: Typically 5% to 8%

Most brokers work on a success fee basis, meaning they only get paid if you sell. The seller typically pays the commission, deducted from sale proceeds at closing.

Is the Cost Worth It?

Let's look at the math:

Example: $1 million business

• Selling on your own: Might sell for $900,000 (10% below market due to pricing mistakes, weak negotiation, limited buyer pool)
• Selling with a broker: Sells for $1,100,000 (proper valuation, competitive bidding, expert negotiation)
• Broker commission (10%): $110,000
• Net with broker: $990,000
• Net without broker: $900,000
• Difference: $90,000 more with a broker

Even after commission, the seller nets $90,000 more. Plus, the sale likely closes 4 to 6 months faster, reducing stress and allowing the seller to move on sooner.

Hidden Costs of Selling Without a Broker

When you sell on your own, you may face:

• Lower sale price: 10% to 20% less than market value
• Longer timeline: 4 to 6 months longer on average
• Legal fees: More attorney time needed for guidance
• Opportunity cost: Time away from running your business
• Stress and mistakes: Costly errors that can kill deals

These hidden costs often exceed broker fees.

How to Choose the Right Business Broker

If you decide to use a broker, choosing the right one is critical. Here's what to look for:

Experience in Your Industry

Brokers with experience in your industry understand:

• Industry specific value drivers: What buyers in your industry care about most
• Typical multiples: What businesses like yours actually sell for
• Buyer types: Who buys businesses in your industry
• Common challenges: Industry specific issues that arise during sales

Ask potential brokers for specific examples of businesses they've sold in your industry, including business types and sale prices.

Strong Buyer Network

A broker's buyer network is one of their most valuable assets. Ask:

• How many qualified buyers are in your network?
• Do you have relationships with strategic acquirers in my industry?
• How do you find new buyers?
• Can you provide references from buyers you've worked with?

Brokers with strong networks can generate competitive bidding, which increases your sale price.

Transparent Communication

You want a broker who:

• Explains their process clearly: You should understand how they'll market your business and find buyers
• Sets realistic expectations: Honest about timelines, pricing, and challenges
• Communicates regularly: Keeps you informed throughout the process
• Answers questions directly: No evasive or vague responses

During initial consultations, pay attention to how brokers communicate. Do they listen? Do they answer your questions directly? Do they seem trustworthy?

Proven Track Record

Ask for:

• Number of businesses sold: How many deals have they closed?
• Average time to sale: How long do their sales typically take?
• Success rate: What percentage of listings do they successfully sell?
• References: Can they provide references from past sellers?

A broker with a strong track record has proven they can deliver results.

Fee Structure

Understand:

• Commission percentage: What percentage do they charge?
• When fees are paid: Only at closing, or are there upfront costs?
• What's included: What services are covered by the fee?
• Additional costs: Are there any extra fees for marketing, legal, or other services?

Be wary of brokers who charge upfront fees or monthly retainers. Most reputable brokers work on commission only.

Common Mistakes When Choosing a Broker

Avoid these mistakes:

Choosing Based on Lowest Fee

The cheapest broker isn't always the best value. A broker who charges 8% but gets you 20% more for your business is better than one who charges 6% but gets you market price. Focus on net proceeds, not just commission percentage.

Not Checking References

Always ask for and check references. Talk to past sellers about:

• Communication: Was the broker responsive and transparent?
• Results: Did they achieve the expected sale price and timeline?
• Process: Was the process smooth or stressful?
• Would they use the broker again?

Ignoring Red Flags

Warning signs include:

• Unrealistic promises: Promising specific sale prices or timelines
• Pressure to sign quickly: Good brokers want you to be comfortable
• Vague process: Can't explain how they'll market your business
• No industry experience: Can't provide examples in your industry
• Upfront fees: Charging before any work is done

Trust your instincts. If something feels off, it probably is.

The Broker Selection Process

Here's a step by step process for choosing a broker:

Step 1: Identify Potential Brokers

Find brokers through:

• Referrals: Ask other business owners, attorneys, or accountants
• Industry associations: Business broker associations often have directories
• Online research: Look for brokers with strong online presence and reviews
• Local business networks: Chamber of commerce, business groups

Create a list of 3 to 5 potential brokers to interview.

Step 2: Initial Consultations

Schedule consultations with each broker. During these calls, ask:

• How many businesses have you sold in my industry?
• What's your typical timeline for businesses like mine?
• How do you value businesses?
• What's your marketing process?
• Who are your typical buyers?
• What's your fee structure?
• Can you provide references?

Take notes and compare responses.

Step 3: Check References

Contact references and ask about:

• Sale price: Did they achieve expected value?
• Timeline: How long did the sale take?
• Process: Was it smooth or stressful?
• Communication: Was the broker responsive?
• Would they use the broker again?

Step 4: Compare Proposals

Ask each broker for a written proposal including:

• Valuation range: What do they think your business is worth?
• Marketing plan: How will they market your business?
• Timeline: How long do they expect the sale to take?
• Fee structure: Exact commission percentage and when it's paid
• Services included: What's covered by the fee?

Compare proposals carefully, focusing on net proceeds and confidence in the broker.

Step 5: Make Your Decision

Choose the broker who:

• Has relevant experience
• Communicates clearly and honestly
• Has a strong track record
• You feel comfortable working with
• Offers the best overall value (not just lowest fee)

What To Expect When Working With a Broker

Understanding the process helps set expectations:

Initial Valuation (1 to 2 weeks)

The broker will:

• Review your financials: 2 to 3 years of statements, tax returns, and bank records
• Analyze your business: Operations, market position, growth potential
• Research comparables: Similar businesses that have sold recently
• Provide valuation range: Realistic estimate of what your business is worth

Preparation and Marketing (2 to 4 weeks)

The broker will:

• Create marketing materials: Confidential information memorandum highlighting strengths
• Develop marketing strategy: How and where to reach qualified buyers
• Begin outreach: Contact buyer network and list on appropriate platforms

Buyer Identification and Screening (2 to 6 months)

The broker will:

• Generate inquiries: Typically 30 to 50 serious inquiries
• Screen buyers: Verify financial capability and serious intent
• Qualify buyers: Narrow down to 5 to 8 qualified buyers
• Facilitate introductions: Connect you with serious buyers

Negotiations and Offers (2 to 4 weeks)

The broker will:

• Receive and evaluate offers: Help you understand each offer
• Negotiate terms: Price, payment structure, transition period, etc.
• Structure the deal: Optimize for your tax and financial situation
• Help you choose: Guide you in selecting the best offer

Due Diligence (30 to 90 days)

The broker will:

• Coordinate due diligence: Organize documents and respond to buyer questions
• Address issues: Help resolve problems that arise
• Protect your interests: Ensure buyer requests are reasonable
• Keep deal moving: Prevent delays and keep process on track

Closing (30 to 60 days)

The broker will:

• Coordinate closing: Work with attorneys, accountants, and lenders
• Finalize documents: Ensure all paperwork is complete
• Facilitate transition: Help coordinate handoff to new owner
• Ensure payment: Verify funds are received properly

Alternatives to Full Service Brokers

If full service brokerage doesn't fit your situation, consider these alternatives:

Broker Consultation Only

Some brokers offer consultation services where they:

• Provide valuation: Professional assessment of your business value
• Review your marketing materials: Help you create effective listings
• Advise on negotiations: Guide you through deal structure
• Answer questions: Provide expertise as needed

You handle marketing and negotiations yourself, but get professional guidance.

Limited Service Brokers

Some brokers offer limited services such as:

• Marketing only: They handle marketing and buyer screening, you handle negotiations
• Valuation and marketing: They value and market, you handle the rest
• Negotiation support: You handle marketing, they help with negotiations

These options can reduce costs while still getting some professional help.

Online Marketplaces

You can list your business on platforms like BizBuySell or BizQuest yourself. However, you'll still need to:

• Value your business accurately: Online calculators aren't reliable
• Screen buyers: Filter out tire kickers and unqualified buyers
• Handle negotiations: Negotiate price and terms yourself
• Manage due diligence: Coordinate the entire process

Many sellers who start on marketplaces end up hiring brokers when they realize how much work is involved.

Making Your Decision

Here's a decision framework to help you decide:

Use a 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

Consider Selling Without a Broker If:

• Your business is very small (under $50,000)
• You already have a qualified buyer
• It's a simple asset sale
• You're an experienced seller
• You have plenty of time and enjoy the process

The Bottom Line

Most business owners benefit from working with a broker. The expertise, buyer network, and professional guidance typically result in higher sale prices, faster closings, and less stress. Even after broker commission, most sellers net more money than selling on their own.

The key is choosing the right broker. Take time to interview multiple brokers, check references, and choose someone with relevant experience who you feel comfortable working with.

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 making decisions. A professional valuation helps you:

• Set realistic expectations: Know what to expect from a sale
• Evaluate broker proposals: Compare broker valuations
• Make informed decisions: Understand your options

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

Step 2: Interview Multiple Brokers

Don't choose the first broker you talk to. Interview 3 to 5 brokers to:

• Compare approaches: See how different brokers would handle your sale
• Evaluate fit: Find someone you're comfortable working with
• Understand options: Learn about different service levels and fee structures

Need help finding brokers? Contact us and we can discuss your situation and help you understand what to look for.

Step 3: Check References

Always check references before choosing a broker. Talk to past sellers about:

• Results: Did they achieve expected sale price and timeline?
• Process: Was it smooth or stressful?
• Communication: Was the broker responsive?
• Overall experience: Would they use the broker again?

Step 4: Make Your Decision

Choose the broker who offers the best overall value, not just the lowest fee. Consider:

• Net proceeds: What you'll net after commission
• Confidence: Do you trust them to get the job done?
• Fit: Are you comfortable working with them?
• Experience: Do they have relevant experience?

Conclusion

Deciding whether to use a business broker is one of the most important decisions you'll make when selling your business. While brokers aren't right for every situation, most business owners benefit from their expertise, buyer networks, and professional guidance.

The key is understanding when brokers add value and choosing the right one if you decide to go that route. Take time to interview multiple brokers, check references, and choose someone with relevant experience who you feel comfortable working with.

Remember: even after broker commission, most sellers net more money than selling on their own. The expertise, buyer network, and professional guidance typically result in higher sale prices, faster closings, and significantly 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 working with a broker 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
• What Is a Business Broker's Role in Selling A Business - Detailed article on what brokers do
• Business Broker vs DIY Sale - Compare selling with a broker versus on your own
• Business Broker vs Marketplace - Compare brokers versus online marketplaces

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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.