Working with business brokers

What a broker actually does — and who they represent

A business broker is retained by the seller to market the business, screen buyers, and manage the sale process to a close. Their fee — a commission on sale price, commonly in the 8-12% range for smaller deals — is paid by the seller and scales with the final price. That's the single most important thing to understand walking in: a broker's obligation and financial incentive both point toward getting the seller the highest price and a fast, clean close, not toward getting the buyer the best deal.

That doesn't make a broker adversarial. A broker who can't close deals doesn't stay in business, and their reputation depends on bringing sellers credible, qualified buyers — which is exactly the reputation you want to build with them (see below). But it does mean reading broker materials and broker enthusiasm with that incentive in mind, rather than treating a broker as a neutral advisor evaluating the deal on your behalf the way your own attorney or CPA would.

Getting on a broker's radar

Brokers screen who gets real information before they screen who gets an accepted offer. Before you see a CIM — the detailed information packet — for most listings, expect to sign an NDA and fill out a buyer profile covering your background, relevant experience, and financing plan.

Proof of funds, or at minimum a credible financing story, matters more than buyers expect. A broker fielding dozens of inquiries per listing has every incentive to prioritize buyers who've done the pre-qualification legwork (see the lender pre-qualification guide) over buyers who are still figuring out whether they can afford anything in the broker's price range at all.

Being responsive, specific, and prepared on early calls builds a reputation fast in a market where the same handful of active brokers cover most of the good listings in a given region or sector. A broker who's dealt with you once and found you serious is far more likely to bring you the next listing before it's even publicly posted.

Reading a CIM critically vs. taking it at face value

A CIM is a sales document, prepared or reviewed by the broker, designed to present the business in its best light. That's not dishonest — it's the broker's job — but it means the numbers you're handed have already been through a favorable lens before you see them (see the seller financials guide for how to normalize SDE and add-backs yourself before you take them at face value).

Treat broker claims that aren't backed by a specific, checkable number as marketing language rather than fact until diligence confirms them. "Steady, loyal customer base," "turnkey operation," and "highly motivated seller" are the kind of phrases that appear on nearly every listing regardless of whether they're actually true of this one.

Ask the broker direct, specific questions early — about seller financing willingness, about why the business is actually for sale, about customer concentration — rather than waiting until you're deep into diligence to find out the answer changes your interest in the deal.

A handful of relationships vs. cold-emailing every listing

Cold-emailing every new listing that crosses a marketplace search is a reasonable way to start, but it doesn't scale, and it won't get you into the off-market deals that never show up on a public marketplace at all (see the direct outreach guide). Most experienced buyers end up with a shortlist of five to ten brokers active in their target sector and geography who know their criteria well enough to flag a fit before it's even listed publicly.

Building that relationship takes the same things that get you taken seriously on any individual listing — being prepared, responsive, and a genuine fit for what they sell — sustained across multiple interactions rather than a single strong first call. It's a slower path to your first deal, but a faster one to your second and third.