What a Business Broker Really Does (And Why You Should Work With One)

For many business owners, the idea of working with a business broker brings mixed reactions. Some see brokers as unnecessary. Others assume they “just find a buyer.” Many believe they can save money by handling the sale themselves.

But the reality is, a good business broker does far more than introduce buyers, and selling without one is far riskier than most owners realize.

Selling a Business Is Not the Same as Running One

If you’ve successfully built a business, you’re experienced, capable, and decisive. That’s exactly why many owners believe they can sell it themselves.

But selling a business is an entirely different discipline. It involves valuation, confidential marketing, negotiation, deal structuring, due diligence, and risk management, all while you’re still expected to run the company.

It’s like trying to remodel your house while you’re still living in it and entertaining potential buyers at the same time.

For most owners, this is the largest financial transaction of their life, and it’s one you’ll likely only do once. Experience matters.

What a Business Broker Actually Does

The most common misconception is that a broker’s job is simply to find a buyer. In reality, that’s only one piece of a much larger process. A professional business broker:

• Evaluates whether the business is ready to sell

• Helps determine the right timing and positioning

• Identifies value drivers and potential deal obstacles

• Advises on how to maximize value before going to market

• Manages the entire sale process from start to finish

In many cases, a broker’s most important work happens before the business is ever listed.

Valuation: Pricing the Business Correctly From the Start

Pricing a business is both an art and a science. The “science” comes from data—financials, comps, multiples. The “art” comes from understanding nuance: market sentiment, buyer psychology, and risk appetite.

Owners often anchor on:

• What they need from the sale

• What a competitor sold for

• A rule-of-thumb multiple

Buyers, however, price based on risk, cash flow quality, and market alternatives.

A broker’s role is to:

• Establish a defensible valuation

• Position the price to attract serious buyers

• Avoid the two most costly mistakes: overpricing and underpricing

An overpriced business sits. An underpriced one leaves money on the table. The right price creates momentum and leverage.

Preparing the Business for Sale—Not Just Listing It

One of the most valuable roles a broker plays is helping owners prepare their business for scrutiny.

This includes:

• Normalizing financial statements

• Identifying legitimate add-backs (e.g., “owner’s personal vehicle expense”)

• Addressing red flags before buyers find them

• Helping organize key documents and information

Buyers are skeptical by nature. Preparation builds credibility that protects value.

Confidential Marketing and Buyer Screening

Most owners worry about confidentiality—and for good reason. A leaked sale can disrupt employees, customers, and competitors.

A broker knows how to:

• Market a business discreetly

• Control the flow of information

• Require confidentiality agreements

• Screen buyers for financial ability and intent

This protects the business while ensuring only qualified, serious buyers reach the table.

Negotiation: Protecting Value and Reducing Stress

Owners are emotionally invested in their businesses. Buyers know this—and they use it.

A broker serves as a buffer, allowing:

• Tough conversations to happen professionally

• Offers to be compared objectively

• Emotions to stay out of negotiations

More importantly, brokers understand deal structure. Price is only one component. Terms, contingencies, earnouts, and post-sale obligations matter just as much.

Managing Due Diligence and Keeping Deals Alive

Most deals don’t fall apart at the offer stage—they fall apart during due diligence. Buyers ask dozens of questions. Deadlines slip. Momentum fades.

A broker:

• Manages the process and expectations

• Prevents unnecessary retrades

• Keeps pressure on all parties

• Allows the owner to stay focused on running the business

This role alone often justifies the broker’s fee.

The Hidden Cost of Selling Without a Broker

Owners who sell on their own often underestimate what they’re risking. Common issues include:

• Accepting the first offer without leverage

• Failing to properly vet buyers

• Losing confidentiality

• Agreeing to unfavorable terms

• Leaving significant money on the table

Ironically, many owners who try to save on fees end up paying far more through a lower sale price or worse terms.

Choosing the Right Business Broker

Not all brokers are the same. Look for:

• Transaction experience, not just licenses

• A proven process

• Clear communication

• Alignment with your goals

Ask how they handle valuation, marketing, negotiation, and failed deals. Experience shows in the answers.

A Broker Is an Investment, Not an Expense

A good business broker is not a cost to be minimized. They are a professional advisor whose job is to protect your life’s work, manage risk, and maximize outcome.

You only sell your business once. The process is complex, emotional, and high-stakes. The right broker helps ensure you do it right.

Discover Breneman Advisors' experience and how we approach business sales here.