Does a business broker represent the buyer or the seller?

Who a broker represents affects whose interests they are working for, and it is a reasonable question to ask directly rather than assume. The answer is not always obvious from the outside, especially when the same brokerage works with both buyers and sellers.

Most business brokers represent the seller

The typical arrangement is a listing agreement between the seller and the broker, with the broker paid from the proceeds of sale. In that arrangement the broker’s duty runs to the seller: getting the best achievable terms, managing the process, and protecting confidentiality throughout the sale.

Buyer representation and dual agency

Some brokers also work with buyers under a separate buy-side agreement, helping them search for and evaluate acquisitions. Occasionally the same broker or brokerage ends up representing both the buyer and the seller on one transaction, sometimes called dual agency, which raises an obvious conflict and should be disclosed clearly to both parties before it happens.

Why this matters to both sides

A seller working with a broker who also represents the buyer, even informally, should ask how conflicts are managed and whether any information has been shared both ways. A buyer approaching a seller’s broker should assume that broker’s duty runs to the seller, not to them, and consider independent advice.

What to ask before relying on a broker’s advice

Ask directly who the broker is engaged by, whether they have any relationship with the other party, and whether they receive a fee from more than one side of the deal. A broker who is clear and upfront about this is easier to trust than one who avoids the question.