Buy-side advisor
A buy-side advisor is a professional engaged by a buyer to help find, evaluate, negotiate and close an acquisition. Unlike a listing broker, who is paid by and represents the seller, a buy-side advisor’s duty runs to the buyer throughout the search and the deal.
Most business brokers work for the seller — their fee comes from the sale proceeds, and their job is to get the seller the best price and terms. A buyer with no representation is negotiating against a professional with none of their own, which is the gap a buy-side advisor is engaged to close.
What a buy-side advisor typically does
- Helps define and refine the buyer’s buy box and sources opportunities that match it
- Reviews financials and prepares the buyer’s questions ahead of formal due diligence
- Advises on offer structure, valuation range and negotiating strategy
- Coordinates with the buyer’s lawyer and accountant through to closing
How they are typically paid
Fee structures vary — a flat retainer, an hourly rate, a fee tied to the size of the deal that closes, or some combination. The terms should be agreed and put in writing before the search begins, the same way a seller would agree a listing agreement with their own broker.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Treadstone LawLegal commentaryBusiness Broker vs. M&A Advisor in Ontario
- 02Treadstone LawLegal commentaryBusiness Broker Commission and Fees in Ontario
- 03Treadstone LawLegal commentaryMergers & Acquisitions
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