What does a business broker do?
A business broker is part marketer, part negotiator, part project manager, and part therapist. The job is to take a profitable but private business, package it so qualified buyers can understand it quickly, and shepherd a transaction through 6 to 12 months of negotiation, due diligence, and closing without it falling apart.
The six things a good broker actually does
- Valuation. Build a defensible price based on Seller's Discretionary Earnings, EBITDA, comparable sales, and industry multiples.
- Marketing package. Confidential business summary, financial recast with add-backs, marketing materials, deal teaser.
- Buyer outreach and screening. Active prospecting, NDAs, financial qualification, background checks.
- Negotiation. Manage offers, structure deals (asset vs. stock, earnouts, seller financing), keep emotional dynamics out of the way.
- Due diligence coordination. Quarterback the lawyers, accountants, lenders, and landlords through 45 to 90 days of detailed review.
- Closing. Allocation, transition planning, escrow, post-closing adjustments.
What a broker does NOT do
- Practice law. Hire a transactional attorney for the purchase agreement.
- Practice accounting. Hire a CPA for tax planning before you sign an LOI.
- Guarantee a sale price. Anyone who guarantees a price before seeing your books is selling, not advising.
When is a broker worth the fee?
For most owner-operated businesses between $250K and $10M in enterprise value, yes. Industry data consistently shows broker-represented businesses sell at a higher percentage of asking price and in less time than for-sale-by-owner attempts. The 8 to 12 percent fee is usually more than offset by a higher final price, faster close, and the owner being able to keep running the business rather than handling 30 buyer inquiries a week.
BizBuzz Brokers offers a free, no-obligation conversation to evaluate whether your business is broker-ready and what an exit could look like.
Frequently asked questions
How is a business broker different from a real estate agent?+
A real estate agent sells property. A business broker sells the operating entity: the cash flow, the brand, the customer relationships, the equipment, the team, and sometimes the real estate too. The skills overlap, but business sales involve financials, contracts, and buyer financing that residential real estate does not.
How much does a business broker charge?+
For businesses under $5M, most brokers charge 8 to 12 percent of the final sale price, paid at closing from the seller's proceeds. Larger deals (above $5M) typically move to investment banker fee structures that are smaller in percentage but include retainers and success fees.
Do I pay the broker if my business does not sell?+
Most brokers work on a success-fee basis: no sale, no commission. Some charge a small upfront marketing fee or valuation fee. Always ask for the fee structure in writing before signing a listing agreement.
Will a broker keep the sale confidential?+
Yes. A professional broker uses blind listings, requires every prospect to sign an NDA before disclosing the business name, and shields your employees, customers, and competitors from learning the business is for sale until you choose to disclose.
How do I know if a broker is any good?+
Ask for: number of closings in the last 24 months, average days on market, list-to-sale ratio, references from recent sellers, and which buyer networks and marketplaces they use. Avoid brokers who promise a price without seeing your books.
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