Sell My Business: How to Find and Work With a Business Broker (And What to Actually Look For)

How Do I Find a Broker to Sell My Business?

To find a broker to sell your business, look for someone with direct transaction experience in your revenue range, a track record of closed deals (not just listings), a proactive buyer outreach process, and a retainer model that aligns incentives. Interview at least two or three advisors. Ask how many buyers they brought to their last five listings. Ask what their close rate is. The answer to those two questions will tell you everything.

Most founders do not know what a good broker-led process actually looks like. They either hire the first person who calls them back, or they try to sell on their own — and in both cases, they leave significant money on the table.

I've handled 75+ transactions and closed over $123 million in deals. Here's exactly how the process works, what to look for in an advisor, and what most founders get wrong.

---

Table of Contents

1. What a Business Broker Actually Does
2. Business Broker vs. M&A Advisor: Which One Do You Need?
3. How to Evaluate and Hire the Right Advisor
4. What to Prepare Before You Hire Anyone
5. What a Well-Run Process Looks Like
6. Red Flags to Watch For
7. What This Costs and How Advisors Get Paid
8. Frequently Asked Questions

---

Less than one in twelve businesses that go to market ever sell. That number sounds alarming. But it has a straightforward explanation: most business owners hire the wrong advisor, prepare the wrong way, or both.

The business sale process is not complicated. But it has a dozen specific points where deals die — and most founders don't know where those points are until they're standing in one.

I'm going to show you what a well-run process looks like, and exactly what to look for when you're hiring someone to run it.

---

What a Business Broker Actually Does

A business broker helps you:

Start with the free 27-factor valuation estimate to know your number before you talk to any advisor.

1. Value your business — producing a probable pricing range based on your actual financials, industry multiples, and current buyer demand
2. Prepare your marketing materials — a confidential information memorandum (CIM) that tells your business's story to qualified buyers; a teaser that goes out before NDA
3. Identify and qualify buyers — not just posting on a marketplace, but actively targeting specific buyers who are likely to pay a premium for your type of business
4. Manage buyer conversations — screening, NDA execution, coordinating site visits and management meetings
5. Drive toward a letter of intent — negotiating the headline terms of a deal before full diligence begins
6. Manage due diligence — keeping the process moving, responding to buyer requests, preventing deal drift
7. Close — coordinating with attorneys, accountants, lenders, and both parties through to the wire

A good broker is not a listing agent. A listing agent posts your business on BizBuySell and waits for the phone to ring. A good broker builds a specific buyer list, runs an outreach campaign, and manages a competitive process where buyers know they are competing.

---

Business Broker vs. M&A Advisor: Which One Do You Need?

The distinction matters at the $3M revenue line.

Business broker: Typically handles businesses under $3M in revenue. Works on volume — many listings simultaneously. Usually lists on marketplaces. Commission-only model is common. Good for smaller deals where the buyer pool is relatively standardized.

M&A advisor: Handles $3M+ in revenue. Custom process for each deal. Proactive buyer outreach rather than marketplace reliance. Retainer model aligned with deal success. Brings domain expertise and buyer relationships that a general broker doesn't have.

For businesses doing $3M or more in annual revenue, you want an M&A advisor. The difference in outcome — in my experience — is routinely 20–40% more at closing, because of what a competitive process does to buyer behavior. The full deal timeline shows exactly what an advisor-led process looks like week by week.

Leverage comes from optionality. When a buyer knows other qualified parties are reviewing the same deal, they sharpen their pencil. When they think they're the only option, they control the timeline and the price.

---

How to Evaluate and Hire the Right Advisor

Here are the questions I would ask any advisor before hiring them:

"How many deals have you closed in the past 24 months in my revenue range?" Listings don't count. Closings count. An advisor with 50 listings and 3 closed deals in your category is not the same as one with 12 listings and 10 closings.

"What is your average number of NDA-signing buyers per listing?" A well-run listing should attract 50+ serious NDA-signing buyers. My listings average 97. That number is what creates competitive pressure.

"How do you find buyers? Walk me through your process." The answer should be specific: targeted outreach to strategic acquirers, PE-backed rollup platforms, search fund operators, and financial buyers who are active in your category. "We list on the major marketplaces and our network" is not an answer.

"What do you need me to fix before we go to market?" Any advisor worth hiring will tell you the truth here. If they tell you the business is ready to list right now without asking any questions about your financials, your owner hours, or your customer concentration — walk away.

"What is your close rate for businesses you take to market?" The industry average is under 20%. Top advisors are 70%+. Know what you're buying.

---

What to Prepare Before You Hire Anyone

The advisor handles the process. You need to handle the preparation. These are the things that determine whether you close at the top of the valuation range or the bottom:

Three years of clean financials. Tax returns, P&Ls, and a trailing-twelve-months statement. If your books are a mess or you've been mixing personal and business expenses, clean this up before you hire anyone. Disorganized financials delay timelines and give buyers ammunition to discount.

Documented addbacks. Every personal expense running through the business — owner car, personal insurance, travel that was partially vacation — needs to be identified and documented. If it isn't documented, buyers won't give you credit for it.

Owner hours below 20 per week. Buyers pay premiums for businesses that run without the founder. If you are working 60 hours a week in the business, your multiple will reflect that. Start extracting yourself before you go to market.

Client or customer diversification. No single client should represent more than 20% of revenue. If you have concentration above that level, have a plan for how it gets addressed before diligence.

Documented processes. SOPs, delivery playbooks, employee handbooks. Anything that makes it clear the business can operate without you. This is what separates a job from an asset.

---

What a Well-Run Process Looks Like

Here is the timeline for a well-run sale process:

Month 1: Preparation. Financial review, addback documentation, CIM and teaser drafting, data room setup. This is done before any buyer sees the business.

Month 2–3: Go to Market. Teaser goes to targeted buyer list. NDAs signed. CIM released to qualified buyers. Management call scheduling begins.

Month 3–5: LOI. Multiple LOIs received. Negotiation on headline terms — price, structure, earnouts, transition period. Select the best offer. Execute LOI.

Month 6–9: Due Diligence and Close. Buyer goes deep on financials, operations, contracts, and legal. Data room responds within 24 hours to every request. Attorneys draft purchase agreement. Wire hits. Close.

Every deal breaks eight to nine times between LOI and close. Financing falls through. A key customer churns. The buyer's lender adds a condition. Momentum protects deals — for internet-focused businesses especially, time is risk. An active advisor keeps the process moving and prevents deal drift from killing an otherwise good transaction.

---

Red Flags to Watch For

No retainer required. Commission-only sounds attractive. But an advisor who takes every listing with no skin in the game is running volume, not a curated process. A retainer means they're invested in your outcome.

"We list on the major marketplaces." If that's the primary buyer acquisition strategy, it is a passive process. You need an active one.

No clear buyer targeting process. Can they name the specific PE platforms, strategic acquirers, or search fund operators who are active in your category? If not, they don't know your buyer pool.

Unrealistic valuations to win the listing. Some advisors will tell you your business is worth far more than it is to win the engagement. Then they'll reduce the price after you're locked in. Ask to see comps. Ask how they derived the number.

No diligence experience. The LOI is the beginning, not the end. An advisor who goes quiet after the LOI is signed — or who can't help you manage a complex diligence process — will cost you the deal.

---

What This Costs and How Advisors Get Paid

Commission: 5–10% of total deal value, depending on deal size and complexity. For businesses doing $3M+ in revenue, expect 5–8%.

Retainer: A retainer paid upfront, credited dollar-for-dollar against commission at close. This is the model I use. It aligns our incentives — I don't make money unless you close at a price that justifies the engagement.

Success fee: Sometimes structured as a flat fee above a certain deal threshold instead of a straight percentage. For very large deals ($20M+), a modified success fee structure may be negotiated.

The math: on a $5M transaction at 7%, the commission is $350K. That is not a small number. But an advisor who runs a competitive process and brings 40+ serious buyers consistently achieves outcomes 20–40% above what a passive process produces. On a $5M deal, 20% is $1M. The commission is not the cost. Leaving money on the table is the cost.

---

Frequently Asked Questions

How do I find a broker to sell my business? Look for direct transaction experience in your revenue range, a track record of closed deals, a proactive buyer outreach process, and a retainer model. Interview at least two or three advisors. Ask how many buyers they brought to their last five listings and what their close rate is.

What does a business broker do? Values your business, prepares marketing materials, identifies and qualifies buyers, manages negotiations, and guides the process from LOI through diligence to close.

How much does a business broker cost? 5–10% commission on total deal value, typically with a retainer credited at close. For $3M+ businesses, expect 5–8%.

What's the difference between a broker and an M&A advisor? A broker handles smaller deals passively through marketplace listings. An M&A advisor handles $3M+ deals through custom proactive buyer campaigns. For businesses doing $3M+ in revenue, you want an advisor.

How long does it take to sell a business with a broker? Four to five months to an LOI, three to four months from LOI to close. Eight to nine months total for a prepared business.

What should I look for when hiring a business broker? Closed deals in your revenue range. Industry experience. Proactive buyer network. Honest assessment of your readiness. A retainer model. And someone who will tell you what needs to be fixed — not just what you want to hear.

---

The Bottom Line

The business sale process is not complicated. But it has a dozen specific failure points — and most founders don't know where they are until they're standing in one.

The founders who get the maximum exit hire the right advisor, prepare before they list, and run a process that forces buyers to compete. The ones who leave money on the table respond to the first interested buyer, negotiate one-on-one, and realize too late that relief replaced leverage.

If your business is at least three years old, generating $600K+ in annual profit, growing year over year, and a buyer could run it from anywhere — I guarantee I will get you 40 serious buyers and an LOI within four months. I have done it every time for businesses that qualify.

The next step is a conversation. No pitch. Just clarity on what your business is worth, who the likely buyers are, and exactly what — if anything — needs to be addressed before you go to market.

Get your free valuation conversation