How to Find a Business Broker

This article was originally written in December 2023 and has since been updated with new discoveries and research in October 2025.

Finding a business broker can make the sale of your small business easier in several ways. Brokers play a pivotal role, from helping you reach a valuation to screening buyers, managing due diligence, negotiating price, and closing the deal. Some will support you end-to-end; others specialize in specific stages. Baton’s team can guide you through the entire process.

This guide is for sellers who want clarity on key qualities to look for and a repeatable way to assess fit. You’ll learn how fees and agreements really work, practical alternatives for sub-$50M owners who want more control, and exactly how to find a business broker online, plus a simple process to shortlist and vet professionals without wasting time.

A Proven Process to Find and Vet a Business Broker

Before you judge resumes or logos, you need a structure. This section gives you a practical flow, from defining your sales profile to verifying references. You will move quickly, make informed decisions, and align incentives so everyone rows toward a successful sale.

Step 1: Define Your Sale Profile

Clarity up front saves weeks later. Capture the essentials on a one-pager so a skilled business broker can respond with specifics, not generalities.

Short list what matters most:

• Size using SDE or EBITDA, plus trailing twelve months and three-year trend

• Industry and business model details that show your business purchase experience is attractive to potential buyers

• Timing goals, key constraints, and any carve-outs

Attach a light financial packet, income statement, balance sheet, and key metrics. This is also the moment to align on pricing language. If your company is owner-operated, SDE vs EBITDA will drive different buyer pools and price expectations, so decide which you will use for market analysis and buyer conversations.

To keep yourself organized, use a Broker Readiness Checklist that covers basic due diligence documents, confidentiality preferences, and a list of questions to ask each candidate.

Step 2: Build a Shortlist

You do not need a hundred names; you need five to eight competent contenders. 

To improve your odds, include at least one competent business broker known in your region and size:

• Start with the International Business Brokers Association member search, then filter for the Certified Business Intermediary credential

• Layer in industry expertise by scanning recent, relevant closed deals and published case studies

• Review reputable marketplaces to understand buyer demand and valuation ranges in your business acquisition category

• Ask two trusted advisors for referrals, for example, your CPA and attorney

The goal is a mix of an experienced business broker or two in your industry, a well-connected broker with buyer reach in your region, and at least one boutique firm that regularly handles complex transactions in your size band.

Step 3: Check Credentials and Track Record

Credentials do not guarantee performance, but they help you avoid avoidable risk.

Double-check for:

• CBI and IBBA involvement show commitment to ethical standards and continuing education.

• State licensing may apply in certain jurisdictions; confirm requirements with your attorney and ask for license numbers where relevant.

• Request a one-page summary of successful transactions over the last twenty-four months that match your size and industry. Ask for the list, the close ratio, and the average time to close.

• Ask for a high-level description of their due diligence process and confidentiality practices, including how they handle NDAs, data rooms, and staff notifications.

You are looking for a consistent pattern, clear buyer screening, use of a real CIM, and evidence of qualified buyers in their pipeline. When you speak with references, ask whether the firm was ultimately hired to sell businesses like yours and how effectively they protected confidentiality during outreach.

Step 4: Interview Two to Three Brokers With a Consistent Scorecard

Different brokers will shine in different ways. 

Use a simple weighted list so you can compare apples to apples:

• Criteria: Relevant deals

  • Weight: 30%

  • What good looks like: Closed 2+ similar deals in last 24 months; can show anonymized CIM and LOI examples

• Criteria: Marketing plan

  • Weight: 20%

  • What good looks like: Clear outreach beyond listings; named buyer categories; sample outreach language; realistic buyer counts

• Criteria: Buyer screening

  • Weight: 15%

  • What good looks like: Documented qualified-buyer process; proof-of-funds checks; NDAs before CIM access

• Criteria: Fee structure & terms

  • Weight: 15%

  • What good looks like: Success-fee oriented; transparent minimums and reimbursables; reasonable exclusivity and tail

• Criteria: Communication fit & style

  • Weight: 10%

  • What good looks like: Fast responses; single point of contact; milestone calendar with dates

• Criteria: References

  • Weight: 10%

  • What good looks like: Two recent seller references in your size and industry who will take your call

Bring the same ten questions to each interview so your scorecard is grounded in evidence, not chemistry.

Step 5: Call References and Verify

Ask for two to three previous clients who sold businesses similar to yours. 

Confirm the basics:

• Was the initial pricing guidance aligned with market signals, and did it hold up in buyer negotiations?

• Did confidentiality hold with staff, vendors, and competitors?

• Did the broker bring qualified buyers with financial capacity and intent, and how many were there?

• How did the broker navigate diligence hurdles and contract terms?

Listen for specifics, not warm generalities. Be alert to long exclusivity, vague marketing, or a due diligence process that sounds improvised.

Step 6: Understand Fees, Agreements, and Incentives

Strong brokers structure contracts so their upside comes from closing. Success for them is fee-driven, not retainer-heavy.

Typical items to clarify:

• Success fees: Many brokers use a percentage of the purchase price, with tiers for larger deals. Ask for a written schedule that matches your sales profile.

• Retainers and minimums: Small, time-boxed retainers can be reasonable; large retainers or open-ended “consulting” are a red flag unless there is a clear scope.

• Exclusivity: Commonly three to six months for smaller deals, sometimes nine to twelve for larger or complex transactions. Longer terms should come with clear exit ramps.

• Tail period: Protects the broker if a buyer they introduced closes after the exclusivity period. Reasonable tails are three to twelve months; overlong tails with vague buyer definitions are a risk.

• Carve-outs: If you already have a named potential buyer, negotiate carve-outs so you can work that path in parallel.

• Reimbursable expenses: Define caps and categories up front, for example, design of a confidential information memorandum or listing fees.

Ask every candidate to walk you through a redacted CIM, a redacted NDA, and a sample milestone calendar from intake to LOI to closing. Then confirm how they will align pricing strategy with a buyer-aligned pricing narrative, supported by comps and a simple market analysis buyers can trust. 

Step 7: Choose Your Path and Consider Alternatives

Not every owner needs a traditional broker. If resources are limited or there is a tight, known buyer universe, you might run a compact process yourself with targeted outreach and strong legal support. 

Many sub-50-million-dollar owners have found success through direct approaches to local competitors or a management and employee buyout. An intermediary can still add value in diligence and closing, even if they are not leading buyer outreach.

For clarity, compare the options below:

• Path: Traditional broker

  • Who it’s for: Owners wanting full service and broad buyer screening

  • Typical fees: Percentage success fee; sometimes small retainers and reimbursables

  • Speed: Moderate

  • Buyer access: Wide network; broker handles screening

  • Process control: Moderate; broker drives

• Path: M&A advisor

  • Who it’s for: Larger or complex transactions requiring deep industry expertise

  • Typical fees: Higher-tiered fees and retainers; more hands-on analysis

  • Speed: Slower upfront; faster once ready

  • Buyer access: Targeted access to strategic and financial buyers

  • Process control: Lower; advisor drives

• Path: Baton platform

  • Who it’s for: Sub-$50M owners wanting structure, buyer matching, and transparent data

  • Typical fees: Lower-friction pricing with a platform toolkit

  • Speed: Faster setup; steady cadence to LOI

  • Buyer access: Curated buyers matched by fit and capacity

  • Process control: Higher; you stay in the loop

If you want structure without losing control, explore our business sale timeline and How to Sell a Business guides to plan the next steps.

Questions to Ask a Business Broker

This section doubles as your interview script and your scorecard backbone. Ask each in your own words, but keep the substance intact so you can compare clearly.

Here are some questions to ask:

1. How many deals like mine have you closed in the last 24 months?

2. What is your average list-to-close timeline for businesses of my size?

3. How do you determine pricing strategy, and how do you defend it with buyers?

4. Can you show a redacted confidential information memo?

5. How do you screen buyers for financial capacity and intent, and how do you handle NDAs?

6. What is your marketing plan beyond listings? Who do you contact directly?

7. How will you protect confidentiality with staff, vendors, and competitors?

8. What is your negotiation approach, and which deal hurdles do you handle most?

9. Explain your fees, exclusivity term, tail period, and expense policies?

10. Provide two to three seller references from similar businesses?

11. What is your communication style, and how frequently will we review milestones?

A strong broker will welcome these questions, answer directly, and often add a few you did not think to ask. A risky one will overpromise on price without reviewing financials, avoid specifics on buyer screening, or rush you to sign an extended exclusivity agreement.

Red Flags When Evaluating a Business Broker

A quick scan for red flags can save months.

Here are a few examples:

• Promised price without reviewing financials or comps

• No recent and relevant references from previous clients

• Long exclusivity with a long tail period and a vague marketing plan

• No buyer screening or confidentiality plan that protects your team

• Unclear fee structure, retainers that exceed reasonable prep work

If any two of these show up, move on. A good business broker is transparent about process milestones, shares a clear list of qualified buyers they plan to contact, and helps you make informed decisions at each step.

What a Great Broker Process Looks Like

You can tell a lot from how a broker describes the work between listing and closing. 

Look for a clear, repeatable flow with checkpoints you understand, like this:

• Intake and discovery: Structured data request, understanding of your industry expertise, and operations.

• Valuation and pricing rationale: Evidence-based, aligned to SDE or EBITDA appropriately, with comparable successful transactions.

• CIM creation: A high-quality, buyer-aligned story with data that anticipates due diligence.

• Buyer outreach and screening: Named buyer categories, thoughtful messaging, documented qualified buyer criteria.

• LOI handling: Guidance on terms and contingencies, clarity on negotiation posture.

• Diligence support: Secure data room, clear due diligence checklist, steady cadence with the buyer’s team.

• Closing coordination: Calendar of deliverables, legal handoffs, and funding steps.

For more on the paperwork and proof points that reinforce trust, use our Due Diligence Checklist and an overview of the quality of earnings.

Alternatives to Traditional Brokerage

Sometimes the right broker is no broker. Owners with a tight buyer list and strong relationships can independently manage a compact process with counsel. Others prefer a modern platform that handles the matching, keeps data transparent, and removes steps rather than adding them. 

If you want a trusted advisor without a full-service mandate, Baton is built for sub-10-million-dollar deals, with a clear business sale timeline, market-ready valuation tools, and templates for NDAs, LOIs, and communications that help you protect confidentiality while moving toward a successful sale.

The right business broker can still provide targeted help if you decide to lead outreach yourself.

FAQs

You will face a few recurring questions as you narrow your options. The brief answers below set expectations on timing, fees, scope, and when a traditional broker or an alternative makes sense. Skim them now so your next conversation with a prospective partner stays focused on fit and outcomes.

Do I Need a Business Broker to Sell My Small Business?

No, not always. If you have a small, very local service with a known right buyer across town, a direct approach with an attorney can work. If confidentiality, buyer screening, and contract terms feel heavy, the right business broker can reduce risk and widen your pool of qualified buyers. Owners often combine paths by using an intermediary for a specific phase, such as pricing strategy or diligence support.

How Much Do Business Brokers Charge?

Most use a success fee, a percentage of the transaction value, sometimes with minimums for smaller deals. Retainers and reimbursable expenses can be appropriate when scoped tightly; they should be clear and capped. Ask each candidate to explain how their incentives align with your goal, which is a successful sale at an acceptable price and timeline.

How Long Does a Sale Take With a Broker?

Simple, well-prepared transactions can move from listing to LOI in a few months, then through diligence to closing in another two to three. Complex transactions, or deals that need operational cleanup, take longer. Ask for the average time to close on their last five deals in your size band.

What Is the Difference Between a Broker and an M&A Advisor?

They overlap, but advisors usually handle larger, more complex transactions with deeper industry analysis and access to strategic buyers and private equity. Brokers tend to focus on small to mid-sized companies and operate with leaner teams. Both can be right depending on size, industry, and your preference for process control.

How Can I Verify a Broker’s Credentials?

Search the International Business Brokers Association directory, confirm the Certified Business Intermediary credential if claimed, and check state licensing where applicable. Then, validate track record with recent, relevant references who will take your call.

Can I Switch Brokers If It Is Not Working?

Yes. Review your exclusivity clause and tail period. If you move on, clarify which buyers are covered by the tail and establish a respectful transition plan to prevent your sale from losing momentum.

What Should Be in a Broker Listing Agreement?

The essentials include a fee schedule, exclusivity length, tail period, carve-outs for named buyers, reimbursable expenses with caps, confidentiality terms, and a clear description of the broker’s services. Ask for a milestone calendar and reporting cadence to keep everyone accountable.

Applying the Signals That Separate Strong Brokers From Risky Ones

Across pricing, screening, confidentiality, and contract terms, the signals are consistent. Strong brokers align price guidance with market signals and encourage cross-checks with other sources. 

They can articulate exactly how they screen buyers for financial capacity and intent, and how confidentiality will be protected with staff and vendors. Their agreements are success fee-oriented, with clean exclusivity, a reasonable tail period, and crisp expense policies. 

Finally, they welcome case studies and references, even if the exact industry does not match, because they know their process travels well. Risky brokers do the opposite; they promise price without data, do not show process artifacts, and try to load economics up front.

If you want to keep momentum, use your scorecard, ask the ten questions, and choose the path that keeps you confident. 

Then, map your next steps and get your bearings with our free valuation tool.