What Is a Business Broker, and Do You Actually Need One?

A business broker helps owners sell their company by valuing it, marketing it confidentially, qualifying buyers, negotiating the offer, managing due diligence, and coordinating closing. Brokers typically charge 8 to 12 percent of the sale price for businesses under $5M. Most owners who use a broker sell faster and for a higher net price than those who go it alone.

What a broker actually does

1. Valuation: builds a defensible price using SDE, EBITDA, and comparable sales
2. Marketing package: confidential business summary, financial recast, deal teaser
3. Buyer outreach and screening: prospecting, NDAs, financial qualification
4. Negotiation: offers, deal structure, emotional buffer
5. Due diligence coordination: lawyers, accountants, lenders, landlords
6. Closing: allocation, transition, escrow, post-closing adjustments

What a broker does NOT do

• Practice law (you hire a transactional attorney)
• Practice accounting (you hire a CPA for tax planning)
• Guarantee a sale price

When is the fee worth it?

For most owner-operated businesses between $250K and $10M in enterprise value, yes. Industry data shows broker-represented businesses sell at a higher percentage of asking price and in less time than for-sale-by-owner attempts. The 10 percent commission is usually more than offset by a higher final price, faster close, and the owner staying focused on running the business.

When DIY makes sense

• You already have a buyer (family, employee, competitor)
• Business is under $250K in value
• You have 10 to 20 hours a week for 6 to 12 months
• Confidentiality matters less because the buyer is known

See the full breakdown or talk to BizBuzz Brokers about whether you actually need one.