Selling a business is a once-in-a-lifetime event for most small business owners. The stakes are high, the process is complex, and the right business broker can mean the difference between a great deal and leaving money on the table.
Yet, many entrepreneurs rush the broker selection process, relying on word-of-mouth referrals, skipping due diligence, and signing agreements without fully understanding the terms. The result? Undervalued deals, slow sales, or businesses that never sell at all.
If you’re thinking about selling, follow these five key steps to avoid costly mistakes and maximize your business’s sale price.
Step 1: Understand Why Choosing the Right Broker is Critical
The Risk of Choosing the Wrong Broker
Too many business owners default to the first broker they meet or pick someone based on a referral, without vetting them properly. That’s a mistake. Here’s what can go wrong:
- Lack of industry expertise: Not all brokers understand your business model or sector.
- Quick, low-value sales: Some brokers push for a fast close instead of securing the best deal.
- Hidden fees & misaligned incentives: If a broker profits from a quick sale, they may prioritize speed over value.
How to Fix It:
- Treat hiring a broker like hiring a key executive—you wouldn’t fill a leadership role without due diligence.
- Define what “good” looks like – Consider your business size, industry, and exit goals before selecting a broker.
Action Step: Before reaching out to brokers, write down your ideal exit scenario and the expertise you need in a broker.
Step 2: Ask the Right Questions to Screen Brokers
Why This Matters
Most business owners don’t know what to ask a broker, which means they default to generic conversations. The result? They sign with someone who isn’t a true fit.
3 Questions to Separate the Best Brokers from the Rest
- “How many businesses like mine have you sold in the last year?”
- Ensures they have recent, relevant experience in your industry.
- Helps avoid brokers who haven’t closed deals recently, since market conditions change fast.
- “Who’s buying businesses like mine right now?”
- A top broker should know the market trends and what types of buyers are most active.
- Gives insight into whether you should sell now or wait for better conditions.
- “What’s the #1 reason businesses like mine don’t sell?”
- Helps you identify red flags before listing.
- Gives you an early advantage in fixing potential deal-breakers (e.g., owner dependency, weak financials).
Action Step: Interview at least three brokers and ask these questions before deciding.
Step 3: Verify Their Track Record & Buyer Network
Why This Matters
Just because a broker says they specialize in your industry doesn’t mean they can prove it. Many brokers talk a big game but:
- Lack actual experience closing deals like yours.
- Don’t have a real network of buyers—they just list businesses and wait.
- Have a poor track record of securing top-dollar deals.
How to Verify a Broker’s Credibility
- Ask for recent case studies or references from past clients.
- Check if they have an active buyer network—are they proactively finding buyers or just hoping for inbound interest?
- Look at online reviews, past deal structures, and client testimonials.
Action Step: Call past clients from their reference list and ask one key question: “Would you use this broker again?”
Step 4: Align the Broker’s Incentives With Your Goals
The Big Problem: Misaligned Incentives
Many brokers prioritize their commission over your best outcome. Some push for:
- Fast, low-value sales to close deals quickly.
- Earn-outs or bad deal structures that benefit buyers, not sellers.
- High retainers and hidden fees that don’t guarantee results.
How to Ensure Your Broker is Working for YOU
- Look for success-based commissions. A good broker gets paid when the business sells, not before.
- Demand transparency. Avoid brokers who bury fees in the fine print.
- Ask if they’d advise waiting. A great broker will tell you to pause your sale if the market isn’t right.
Action Step: Review the broker’s contract carefully and question any upfront fees before signing.
Step 5: Prepare Your Business for a Smooth Sale
The Harsh Reality
Even the best broker can’t sell a business that isn’t ready. Many businesses fail to sell because of:
- Messy financials. Buyers want clean, transparent records.
- Owner dependency. If your business can’t run without you, it’s risky to buyers.
- Bad timing. Selling in a downturn can reduce your valuation.
How to Maximize Your Sale Price
- Organize your financials. Clean books = a higher valuation.
- Reduce owner dependency. Systematize operations so your business runs without you.
- Time your sale strategically. Selling when your industry is trending upward can add significant value.
Action Step: Take a free exit-readiness test to identify any red flags before listing your business.
Final Thoughts: Take Control of Your Exit Strategy
Choosing the right broker isn’t just about closing a deal, It’s about maximizing your business’s worth and securing a life-changing exit.
Here’s what to remember:
- Don’t settle for the first broker you meet. Interview multiple candidates.
- Do your due diligence. Ask the tough questions.
- Get your business exit-ready. Clean financials, strong systems, and smart timing all increase your valuation.
Your business is valuable. Let’s make sure your exit is too by using the above 5 steps to find the right business broker.
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