Should I use a business broker to sell my business?

A business broker is not required to sell a business in Canada, but most owners who sell mid-sized companies use one. The decision comes down to how much your time is worth, how complex the sale is, and whether you have the network to find qualified buyers yourself.

What a broker actually does

A broker markets the business, often without naming it using a blind listing, screens buyers for seriousness and financial capacity, coordinates the process, and negotiates on your behalf. A good broker also keeps emotion out of negotiations and protects confidentiality by controlling who sees sensitive information and when.

What it costs you

Brokers are typically paid a commission on the sale price, due on closing, usually set out in a listing agreement that also covers the length of the engagement and what happens if you find your own buyer. Ask exactly what is included, such as marketing, buyer screening and negotiation, and how the commission is structured before you sign anything.

When going direct can make sense

For a very small business, or a sale to a known buyer such as an employee, family member or competitor, some owners sell without a broker and negotiate directly, sometimes using a lawyer or accountant to run the process instead. This saves the commission but puts the marketing, buyer vetting and negotiating on you.

Broker versus other advisors

A broker is not the same as your accountant or lawyer, and you generally need all three: a broker to run the sale process, an accountant for tax structure, and a lawyer for the agreement of purchase and sale. Ask any broker for references and confirm how they typically structure engagements before committing.