You think: “Do I Really Need a Broker to Sell My Business?”

Thinking about selling your business? That’s a big step—congratulations! You might be wondering: Do I really need a broker? The short answer is: No, you don’t have to hire a broker! But since you are still reading, I know you want the long answer: So read on…

You think: “Wait, How Much?!”

When you ask about their services, you might be shocked by the commission: brokers typically charge 8-12% of your sale price. For example, if your business is worth a cool million dollars, that’s a hefty $100,000! One hundred thousand dollars!

You ask: “For What?”

“What do they actually do to earn that much?” As a know-it-all small business owner, you might feel confident selling on your own, and save every penny. Yes, I used to think that too. But before you dust off your suit and start rehearsing your pitch, let’s explore what brokers actually provide.

You ask: “What Do Brokers Do for Their Fees?”

Brokers handle several crucial tasks that can make the selling process smoother—tasks you might not want to tackle on your own. Here’s a breakdown (Sorry, my engineering mindset can only work in sequential order, it’s not cut and paste from ChatGPT.):

1. Valuation: The Price is Right… or Isn’t It?
Setting the right price is critical. Underprice, and you lose money; overprice, and your listing may sit for months. Brokers have tools to analyze market trends and numbers to help you find that sweet spot unique to your business.

2. Finding the Right Buyer: It’s Not Like Selling a Used Car.
Selling a business isn’t like selling a used car. While you could post an ad online, most buyers won’t come from a simple listing. Brokers have a network of serious buyers and can filter out those just browsing.

3. Keeping It Quiet: Don’t Start a Panic.
You probably don’t want to announce in a meeting, “Hey, I’m selling the business!” A broker knows how to keep things discreet, protecting you from unwanted attention from employees and competitors.

4. Negotiations: Because It’s Not Just About Price.
Selling isn’t just about the price; it’s also about managing emotions. A skilled broker is a master communicator, who can navigate the negotiation process, ensuring both sides feel heard and valued, which can lead to smoother deals.

5. Time, Stress, and Gray Hairs.
Selling a business can be overwhelming, especially while running it. Brokers take on the heavy lifting—handling inquiries and negotiations—so you can focus on what you do best.

You ask again: “Can I Sell My Business Myself?”

Absolutely! Many people do. If you feel confident and check all the boxes above, go for it. But remember, selling a business isn’t as simple as putting up a “For Sale” sign. You could spend months—or even years—searching for the right buyer and navigating legal complexities.

Think of it like planning a wedding—can you do it all? Sure! But you might end up feeling stressed and overwhelmed by the end.

Your final question: “Is It Worth the Cost?”

Now, back to the big question: Is it worth paying a broker 8-12%?

Brokers not only help you sell your business—they often secure a higher sale price, thanks to their expertise and market knowledge. For many, that commission feels like a good deal when you consider the time saved and the peace of mind gained.

In the end, a successful sale means you walk away with confidence, knowing you made the right choice. Remember: A deal is only a deal if it closes!

So, if you’re thinking about selling your business, consider reaching out to a broker. Worst case, you listen to their pitch, sip some free coffee, or maybe even eat some free lunch from a desperate new broker, and decide to go it alone. Best case? They might just help you get more for your business than you ever thought possible.

Lastly, to the buyers out there—you might not be thrilled with this perspective. After all, everyone loves a bargain, right? “Buy low, sell high” is the name of the game. But here’s the thing: a skilled broker’s role is to find the best match for both parties and craft deals that are mutually beneficial. Whether you’re aiming for a high price or a low one, it all boils down to your specific business goals at that very moment. So, if you’re curious about how to assess the true value of a business? Click here for my insights in the next blog post! How to truly value a business?