If you're thinking about selling your business, one of the first questions you'll run into is whether you need a business broker. It's a fair question. Understanding what a business broker does — and when they're worth the cost — helps you make that decision from a position of knowledge, not guesswork.
The honest answer: sometimes a broker is exactly what you need. Sometimes you don't need one at all. It depends on your situation, your industry, and how you want the process to go.
What Does a Business Broker Actually Do?
A business broker is an intermediary between you and potential buyers. Their job is to manage the sale process on your behalf.
That typically includes helping you determine a realistic asking price, preparing a marketing package that presents your business to buyers (called a Confidential Information Memorandum, or CIM), listing your business on marketplaces and through their buyer network, fielding inquiries and screening buyers, coordinating due diligence, and helping negotiate the terms of the deal.
A good broker earns their fee. They know how to position your business, they have relationships with qualified buyers, and they handle the back-and-forth so you can keep running your company during the process. They've seen what kills deals and what closes them, and they can help you avoid common mistakes.
A bad broker wastes your time. They overpromise on valuation to win your listing, bring unqualified buyers to the table, go dark for weeks at a time, and treat your business like one of 30 listings they're juggling. The difference between a good broker and a bad one is significant — and not always easy to spot upfront.
If you're evaluating brokers, ask how many deals they've closed in the past year, what industries they specialize in, and how many active listings they're currently managing. The answers will tell you a lot.
How Much Does a Business Broker Charge?
Broker fees are one of the first things sellers want to understand, and they should be. For businesses under $5 million in sale price, the standard commission runs 8–12% of the total transaction value. On a $3 million deal, that's $240,000 to $360,000.
For larger deals, many brokers use a modified Lehman scale — a tiered fee structure where the percentage decreases as the sale price increases. Some brokers also charge an upfront retainer, typically $10,000–$25,000, which may or may not be credited against the final commission.
The fee comes out of the sale proceeds. You don't write a separate check — it's deducted at closing. But it's real money, and it directly reduces what you walk away with.
Whether that fee is worth it depends on what the broker actually delivers. A broker who brings multiple qualified buyers and creates competitive tension in the process can drive your sale price up by more than their commission. A broker who brings one lukewarm offer after six months of marketing did not earn that fee.
There's no universal answer to how much does a business broker charge — it varies by market, deal size, and the individual broker. Get the fee structure in writing before you sign a listing agreement, and understand exactly what services are included.
When a Broker Makes Sense
There are situations where working with a broker is clearly the right move.
If you don't know who your buyer might be, a broker's network and marketing reach matter. They can put your business in front of buyers you'd never find on your own. If you want competitive tension — multiple interested buyers making offers — a broker is the most effective way to create that dynamic.
If you've never sold a business before and want help managing the process, valuation, and negotiation, a broker provides structure. They've done this dozens or hundreds of times. You're doing it once. That experience gap is real and worth paying for.
And if your business is in a broadly competitive market — one where many types of buyers might be interested — a broker's ability to cast a wide net adds genuine value.
When You Might Not Need a Broker
There are also situations where do I need a broker to sell my business has a clear answer: probably not.
If a buyer has approached you directly — someone who already knows your industry, understands your business, and has the capital or financing to close — you may not need an intermediary. The buyer is already at the table.
If you're in a niche industry where the pool of potential buyers is small and identifiable, a broker's marketing effort adds less value. The people who would buy your business already know who you are. In plumbing, HVAC, electrical, and other trades, this is more common than people realize. Acquirers focused on home services are actively looking for businesses like yours.
And if you want more control over who buys your business — not just the highest bidder, but the right fit for your team and your customers — working directly with a buyer gives you that. You can evaluate the person across the table, ask direct questions, and make a decision based on more than just price.
Selling directly doesn't mean selling without professional help. You'll still want an attorney reviewing the purchase agreement, an accountant advising on tax implications, and a clear understanding of the steps involved in a sale. How to sell a business without a broker doesn't mean doing it alone — it means choosing a different path to the same destination.
Understanding how deal structure and financing work is just as important whether you use a broker or go direct. The mechanics of the deal don't change — only the process of getting to the table does.
Whether you work with a broker or talk to buyers directly, the most important thing is finding someone who understands your business, your goals, and what matters to you beyond the price. If you want to see what a direct conversation with an acquirer looks like, our process is designed to be straightforward and transparent. Reach out anytime — no obligation, no pitch.