Choose a business broker by checking relevant completed deals, the individual who will handle your sale and a credible buyer outreach plan. Compare written scopes, fees, exclusivity, termination rights and post-termination commission terms before signing.
By Tony Vaughan · Published · Updated · Last reviewed
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So, after spending many years of blood, sweat and tears building your business, it is time to sell…
Owners commonly want to maximise net sale proceeds while protecting business performance, management and employees. Discuss these priorities with prospective brokers rather than treating speed or headline price as the only measure.
Selling without a broker is possible, but owners need appropriate skills, time and confidentiality controls. Consider what an exit adviser can help with before deciding who to contact.
Business brokers differ in sector experience, transaction size and service scope. Compare those differences rather than assuming all firms offer the same support.
Questions to ask prospective business brokers
Common advisory fee approaches
Retained engagement
An initial engagement fee with a lower success fee on completion.
Common where significant preparatory work is required.
Success fee
A fee calculated on the outcome, payable on completion.
The adviser's return depends on completing a transaction.
No upfront engagement fee
No fee before an intermediate stage; some advisers include a payment at Heads of Terms.
Terms vary. Always confirm in writing what is payable and when.
When choosing your business broker, you need be happy with both the broker firm and the individual broker that will represent you. Ask the questions that are important to you and make sure you get a straight answer. As a minimum you should be asking:
Confirm who will represent you at each stage and assess their relevant experience. Sale timescales vary with preparation, buyer funding, due diligence and negotiations; ask for a reasoned plan rather than relying on a standard completion period.
What marketing will my business receive?
Ask for a marketing plan explaining how suitable buyers will be identified and approached, alongside any advertising. Require clear confidentiality controls and reporting; targeted outreach does not guarantee a buyer.
What size of business do you normally represent?
Ask for examples of completed transactions with comparable business models, sectors and deal sizes. alone is not a reliable test of whether a broker is suitable.
A poor fit can waste time and money. Agree reporting and review points, and understand when to consider changing broker before committing.
Compare proposals and contract terms
Do your research, meet two or three different business brokers and choose a) who you feel will best represent you and your business and b) who you feel will support you and help negotiate your best deal.
Before signing, compare fees, expenses, exclusivity, termination rights and any commission payable after the instruction ends. Obtain independent legal advice on unclear terms.
Understand your options before deciding. If you would like to discuss your own circumstances, you can request a confidential business exit review; enquiries are reviewed by experienced advisers who can discuss suitable options.
Common questions
Who should I meet before appointing a broker?
Meet the person who will lead your sale, not just the person pitching for the instruction. Ask how work is delegated and who covers absences.
What evidence should I request about a broker’s marketing?
Request a proposed buyer profile, research and outreach methods, confidentiality controls and reporting schedule. Ask how the approach fits your sector and business size.
Should I choose a broker solely on the highest valuation?
No. Ask for the evidence, assumptions and likely buyer rationale behind the valuation. Compare delivery capability and contract terms as well as the suggested price.
Which broker contract terms need particular attention?
Check initial and success fees, VAT and expenses, exclusivity, minimum term, notice requirements and commission after termination. Ask a solicitor to explain unclear clauses.
General information from our archive, not personal advice.
Explore a related business sale question
Talk your options through in confidence
Understand your options before deciding. Enquiries are reviewed by experienced advisers who can discuss suitable options. Submitting an enquiry does not create an advisory engagement.
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