Should You Use a Business Broker to Sell Your Business? Here’s the Real Story
Understanding the Risks and the Rewards of Working with a Business Broker

Why you should not use a business broker.
I have just googled “Why you should not use a business broker”. Here is what Google said:
While business brokers can be helpful in selling a business, there are some reasons why some business owners choose not to use them. These include high fees and commissions, potential conflicts of interest, and the possibility of a longer sale timeline. Additionally, some owners prefer to maintain more control over the sale process.
Here's a more detailed look at the potential drawbacks:
1. Cost: Business brokers typically earn a commission based on the final sale price, which can range from 5% to 10% or more. This can be a significant expense, especially for smaller businesses or those with complex sales.
2. Conflicts of Interest: Brokers are motivated to sell the business to earn their commission, which may lead to them prioritizing a quick sale over getting the best possible price or terms for the seller.
3. Less Control: When using a broker, sellers relinquish some control over the sale process, including marketing strategies, buyer selection, and negotiation tactics.
4. Longer Sale Timeline: While brokers can streamline certain aspects, their involvement can also add steps and potentially slow down the process, especially if they have many clients or if the broker is not experienced in the specific industry.
5. Misaligned Incentives: A broker's primary goal is to close a deal, which might not always align with the seller's best interests or long-term goals.
6. Lack of Confidentiality: While brokers are expected to maintain confidentiality, there's always a risk that information could leak, potentially affecting employees, customers, or suppliers.
7. Over-reliance on Valuation: Some brokers might inflate the initial valuation to secure the listing, which can lead to disappointment if the business doesn't sell at that price.
8. Not a Guarantee of Success: Brokers can't guarantee a sale, even with their best efforts. They also can't sell a business that is inherently difficult to sell.
Why Business Owners Should Use a Business Broker
Selling a business is a significant event, potentially life-changing for many owners. While concerns about cost, control, or timeline exist, leveraging a professional business broker offers distinct advantages that can lead to a faster sale and a better price. Here’s how business brokers directly address and counteract the concerns raised:
1. Maximising Sale Price and Value
- Expert Valuation: Brokers have in-depth industry knowledge and access to market data, ensuring your business is neither undervalued nor overpriced. This attracts serious buyers and maximises your sale price.
- Strategic Preparation: Brokers help owners identify ways to increase business value before the sale, such as improving financials and highlighting unique selling points.
2. Access to Qualified, Serious Buyers
- Vast Networks: Brokers maintain broad databases and established relationships with qualified buyers, private equity, strategic buyers, and high-net-worth individuals, who may never see a private or DIY listing. This increases competition and the likelihood of obtaining the best price in a shorter timeframe.
- Buyer Screening: Brokers vet and qualify buyers, ensuring that only those who have the financial strength and intent to purchase advance in the process, reducing time wasted on unqualified leads.
3. Professional Marketing and Confidentiality
- Targeted Marketing: Brokers use proven marketing channels and techniques to present your business at its absolute best, often reaching a targeted audience quickly and discreetly.
- Maintaining Confidentiality: Brokers use NDAs, confidential listings and act as intermediaries to ensure sensitive information is only released to serious, vetted buyers—protecting employees, clients, and the reputation of your business throughout the process.
- When to Tell Staff: Qualified experienced business brokers know how and when to manage the communication with staff in the most professional and efficient manner.
4. Efficient, Streamlined Process
- Time Savings: Managing a business sale is complex and time-consuming. Brokers facilitate due diligence, coordinate paperwork, and manage negotiations, allowing owners to focus on running and maintaining the business’s value rather than getting bogged down by procedural details.
- Faster Sale Timeline: Professional brokers often accelerate the timeline by efficiently handling buyer enquiries and negotiation hurdles, using their experience to keep deals progressing and resolve issues before they derail the process.
5. Skilled Negotiation and Deal Structuring
- Experienced Negotiators: Brokers act as objective, skilled negotiators, aiming for terms that benefit you, not just a quick sale. Their compensation depends on a successful outcome, so they are motivated to secure the best price and conditions.
- Customised Deal Strategies: They understand tax implications, seller financing, and deal structure options, which can significantly impact your net proceeds and the likelihood of closing.
6. Reducing Owner Stress and Risk
- Less Emotional Strain: Selling a business can be emotionally taxing. Brokers provide objective guidance and keep negotiations professional, reducing emotional conflicts or missteps that can cost money or kill a deal.
- Mitigating Sale Risks: With experience identifying and addressing common deal-breakers, brokers are more likely to see the sale through to closing compared to owners handling the process alone.
7. Boosting the Odds of a Successful Sale
- Higher Closure Rates: Statistics show that businesses sold via brokers are more likely to reach a successful closing, thanks to structured processes and expert problem-solving.
In summary:
Hiring a professional business broker is not about relinquishing value or control; it’s about optimising both. Their expertise, networks, and focus on efficiency are designed to help you achieve the best price in the shortest possible time while reducing stress, maintaining confidentiality, allowing you to focus on daily business operations, and maintaining confidentiality.
Thinking of Selling Your Business? Let’s Talk.
With decades of experience and hundreds of successful business sales, Bruce Coudrey and the team can guide you through every step of the process.
Get in touch today for a confidential discussion and expert advice on how to achieve the best outcome when it’s time to move on.
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Call Bruce on 0413 728 400 or
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