If you’ve been considering selling your business, you’ve probably searched for business brokers already.
It’s often the default assumption – that you’ll need a broker to sell – but is it valid?
In this blog we will go through the pros and cons of using business brokers, so that you understand what they do, and what the alternatives might be for your situation.
What does a business broker do?
A business broker acts as an intermediary between a seller and potential business buyers. They prepare sales materials, market the business confidentially, field enquiries, manage negotiations and guide the transaction to completion.
For many owners, this structure feels reassuring. Selling a business is unfamiliar territory, and business brokers present themselves as the safe pair of hands.
However, it doesn’t automatically mean they are the only route to selling your business.
The pros of using a business broker
Access to Buyers
Brokers market your business to a pool of potential purchasers. If you have no obvious buyer in mind, this can create exposure and generate potentially competitive offers.
Process Management
A business broker runs a structured sale process, managing NDAs, buyer screening, negotiations and due diligence. This can reduce the administrative burden on you.
Emotional Buffer
Selling a business can be personal. A broker can act as a go-between, keeping conversations commercial rather than emotional.
The cons of using a business broker
Significant Fees & No Guarantees
Broker fees are typically between 5% and 10% of the final sale price. On a £3 million transaction, that’s £150,000 – £300,000 leaving the deal before it even reaches you.
Some business brokers charge a monthly fee whether a deal is done or not and for those brokers who get paid upon a successful deal; whilst they might be incentivised, there are no guarantees that it will be the right deal for you in the long term.
Wider Exposure Can Reduce Discretion
Marketing a business broadly, even confidentially, increases the number of people that are aware that your business may be up for sale. For some owners, that level of exposure makes them uncomfortable.
Longer Timelines
A broker-led competitive process can take many months and may feel unnecessarily drawn out, especially if you are paying those monthly retainers.
The alternative: Selling directly to a buyer
What many business owners don’t realise is, that you don’t have to use a broker to sell your business at all.
If you are open to selling to a strategic acquisitions’ specialist, you can speak directly to a buyer. This removes broker feesentirely and often results in a more discreet, relationship-led process.
A direct buyer can still provide:
- Professional valuation insight
- Structured due diligence
- Clear deal terms
- Legal and financial coordination
- Experienced acquisition expertise
But without charging you a percentage of your life’s work.
Why some owners choose to sell direct
For many founders, it’s not just about price. It’s about finding an exit deal that feels right. As our client Philip Pugh from Adept CTS concluded.
This can often mean:
- Protecting the legacy of the business
- Looking after employees
- Ensuring continuity for customers
When you sell direct, you are dealing with a decision-maker from day one – rather than marketing your business to an open market & seeing what happens.
Is a business broker right for you?
A business broker can be useful if your priority is to explore multiple buyer options.
But, if you value discretion, simplicity and retaining the full value of your sale, a direct conversation with a buyer may be a smarter first step.
Thinking about selling?
If you are considering an exit in the next few years – or simply want to understand what your options are – Tech Acquisitions buys businesses directly.
No broker fees.
No long, drawn-out process.
No unnecessary exposure.
Just a confidential, straightforward conversation with a buyer who understands your concerns and can help you achieve greater long-term value.
Before appointing a business broker, it may be worth having a discussion. We’re here to help. Contact us here, to book a no obligation valuation.