How do I choose a business broker?

Choosing a broker is closer to hiring a key advisor than picking a vendor off a list. The right one can materially affect how much you net and how smoothly the process goes, so it is worth spending real time on the decision rather than signing with the first person you meet.

Check the track record in your size and industry

Ask how many businesses roughly your size, in your industry, the broker has actually closed, not just listed. A broker who mostly sells restaurants may not be the right fit for a manufacturing business, and volume in a different segment does not automatically transfer. Ask for specifics, not general claims of experience.

Understand exactly how they are paid

Get the fee structure in plain language before you get near a listing agreement: how the commission is calculated, whether there is a retainer or minimum fee, and what happens if you find your own buyer. Compare structures across a few brokers so you understand what is normal rather than judging one offer in isolation.

• Ask for references from at least two or three completed sales, not just satisfied listings.
• Ask how they will market your business, including whether it will be named or kept confidential.
• Ask how they screen buyers for seriousness and financing capacity before sharing sensitive information.
• Ask what the agreement says about the term, exclusivity, and how to end it if it is not working.

Weigh communication and fit as well as credentials

You will work closely with this person through a stressful process, so pay attention to how clearly they explain things and how responsive they are before you have even signed. A broker with a strong résumé who is hard to reach is a real problem once your sale is underway.