How to Find a Business Broker Worth Working With

Vet business brokers by commission structure, deal volume, industry expertise, and track record to maximize your exit value.

1. Check their deal volume and industry focus. Request a list of transactions closed in the past 24 months in your industry and revenue range. Brokers handling 8-15 deals annually typically have better market knowledge than those doing 3-4. Verify deals through public records or direct seller contact when possible.
2. Analyze their commission structure and fee transparency. Standard commission ranges from 6-12% for businesses under $5M, sliding down to 3-6% above $10M. Avoid brokers charging upfront fees above $5,000 or success fees plus monthly retainers exceeding $2,500. Get the commission structure in writing before signing.
3. Evaluate their marketing reach and buyer network. Ask for their buyer database size and acquisition criteria breakdown. Effective brokers maintain 500+ qualified buyers and use 4-6 listing platforms beyond their own website. Request examples of marketing packages for similar businesses.
4. Test their valuation methodology and market knowledge. A competent broker should present 3-5 comparable sales and explain multiple valuation approaches (revenue multiples, EBITDA multiples, asset-based). Their initial range should align within 15-20% of your own research or professional appraisal.
5. Verify references and average time to close. Contact 3-5 recent sellers directly, focusing on deals that closed within 12-18 months. Ask about communication frequency, buyer quality, and final sale price versus initial listing. Average time to close should be 6-12 months for established businesses.
6. Review their listing agreement terms and exclusivity period. Standard exclusive periods run 6-12 months with performance benchmarks for extending. Ensure you retain the right to sell directly to existing contacts and negotiate a reduction clause if they fail to produce qualified offers within 90 days.