The guide
The short answer
You can sell a business without a broker, and it is most practical when you already have a likely buyer, such as an employee, a competitor or a customer. A broker is usually paid a success fee at closing, commonly quoted at around 10% of the price on smaller deals, to find and screen buyers and run the process. The records a buyer's lender checks are the same either way.
Do you need a business broker to sell your business?
No. Some owners sell to someone they already know, or hire a lawyer and an accountant and find the buyer themselves. Others hire a broker to run the whole process.
Many brokers do the work well. This page sets the two routes side by side. For the full path, see how to sell a small business.
What does a broker do, and what do you take on without one?
Here are the main jobs in a sale, as an attorney-broker lists them, and what lands on you without one.
| Job | With a broker | Selling it yourself |
|---|---|---|
| Price | Gives an opinion of value from your financials | You get one from a broker or a certified appraiser first (what your business is worth) |
| Finding buyers | Markets it confidentially, on listing sites and through its contacts | You approach people you know, and may list it yourself |
| Screening | Vets buyers, attends showings | You judge who is serious and can pay, and get a signed NDA (non-disclosure agreement) first |
| Negotiating | Negotiates the offer and terms | You negotiate your own price and letter of intent |
| Due diligence | Answers the buyer's requests, tracks their financing | You answer every request while running the business |
| Contract and closing | Attends closing, helps with problems | Your lawyer drafts the contract and handles closing |
In the second-quarter 2026 Market Pulse survey from two industry groups, the International Business Brokers Association (IBBA) and M&A Source, 255 brokers and advisors reported that sales under $2 million averaged six to ten months from the broker being hired to closing, and sales of $2 million to $50 million averaged 11 to 12 months. Whoever runs the sale, a buyer's questions and financing take time.
How much do business brokers charge? Fees and commissions
Most are paid a success fee (also called a commission): a percentage of the price, paid by the seller when the sale closes. BizBuySell says the fee is not set by law: it is agreed in a contract and is negotiable.
Published success-fee ranges differ, and none we found comes from a survey:
| Source | What it says |
|---|---|
| BizBuySell (article by a Florida attorney and broker) | 10% to 15% for $100,000 to $1 million |
| Nav | 5% to 12% of the sale price |
| ExitPromise (one broker interviewed, 2021) | Typically 10% for a small business |
Other fees:
| Fee | How it works | Commonly quoted |
|---|---|---|
| Minimum or flat fee | A floor, or a set amount on a very small sale | BizBuySell gives $10,000 or $15,000 flat on a $95,000 business |
| Upfront fee | Paid to start the work, usually credited against the fee at closing (Nav) | $1,000 to $2,500 on smaller deals (one broker quoted by ExitPromise, 2021) |
| Sliding scale | The percentage falls as the price rises | BizBuySell's example: 10% of the first $1 million, 8% of anything above |
What a fee looks like in dollars (arithmetic, not a quote)
| Price | 8% | 10% | 12% |
|---|---|---|---|
| $500,000 | $40,000 | $50,000 | $60,000 |
| $1 million | $80,000 | $100,000 | $120,000 |
| $2 million | $160,000 | $200,000 | $240,000 |
On that sliding-scale example, a $2 million sale pays $180,000, or 9%. A flat fee lifts the rate on a small sale: BizBuySell's $15,000 on a $95,000 business works out to about 16% of the price.
After a 10% fee, a sale needs a price about 11% higher to leave you the same money. That is arithmetic, not a verdict: a broker's reach may bring a better price, or any buyer at all.
What does the evidence say?
You will read that brokers win much higher prices, and that selling yourself saves the fee. We looked for an independent study comparing the two and could not find one. The claims we found came from firms that promote one route or the other.
What is documented comes from surveys of brokers and advisors, so it mostly reflects deals they handled. The IBBA's Market Pulse for the fourth quarter of 2022 (493 responses, January 2023) found buyers located within 20 miles in 69% of deals under $500,000, falling to 42% from $1 million to $2 million, 40% from $2 million to $5 million and 11% from $5 million to $50 million. Smaller businesses tend to sell to local buyers, so the nearby people you know, such as customers, competitors and employees, are a sensible first place to look.
Can you sell a business without a broker? When selling by owner tends to work
These lists are rules of thumb. BizBuySell's article on selling by owner says finding a qualified buyer can be tiresome unless you already have one in mind.
- You already have a likely buyer: an employee, a family member, a competitor, a customer, or someone who approached you.
- The business is small and local.
- You can keep running the business while answering a buyer's questions for months.
- A lawyer and a CPA are lined up before the first conversation.
- You can keep it from staff and customers until you choose to tell them.
When does a broker tend to earn the fee?
- You have no buyer yet.
- Buyers are likely to come from outside your area. The larger or more complex the business, the more this applies.
- Confidentiality is critical.
- You cannot step back from running the business each day.
- You would rather have someone between you and the buyer when price is discussed.
Brokers choose which businesses to list, so a business with unclear books or an unrealistic asking price may struggle to find a broker. That is a reason to prepare first and choose the route afterward.
What are the rules about who may sell for you?
Broker licensing varies by state. BizBuySell lists California, Florida and Illinois (registration only) among the states that require a license, while Virginia REALTORS says Virginia has no license requirement for representing a business buyer or seller. Your lawyer can tell you about yours.
Either way, the preparation is the same
Your books were prepared for tax reporting, not for a sale. A buyer needs a clear view of what the business earns for its owner.
If the buyer borrows through an SBA 7(a) loan (SBA's main business loan program), the lender must verify the seller's financial data and, above a $350,000 business price, get a business valuation. SBA's rules (SOP 50 10 8.1, effective October 1, 2026) say the valuation must be requested by and prepared for the lender, not for the buyer or seller. The lender checks the figures behind it against the seller's IRS transcripts, the IRS's own record of the returns you filed. So a price opinion from you or a broker helps set an asking price but does not replace the lender's checks. Start with how to prepare a business for sale and the documents buyers and lenders ask for.
Questions to ask a broker before you sign
- What is the fee charged on? The total price, or the cash you receive? What about a seller note (you lend the buyer part of the price), an earn-out (part of the price paid later if the business hits targets), and working capital (inventory plus what customers owe you, less unpaid bills)?
- What is the percentage and the minimum, and is any sliding scale written out in dollars? Are there upfront or marketing charges, and are they credited against the fee?
- How long is the agreement? Gaebler Ventures, a business-advice site, says usually 6 to 12 months, during which you cannot sign another broker.
- What is the tail, the period after the agreement ends when a fee can still be owed on a sale that closes? A law-firm article says six months to two years, with 12 months typical. Ask which buyers it covers, in writing.
- If you find the buyer yourself, is the fee lower? Gaebler suggests asking for a clause that limits it.
- If the buyer has a broker, who pays them? BizBuySell says that when brokers share a sale, your broker's fee should cover the buyer's broker.
- How will you set the price, and which sales of similar businesses will you base it on? How many businesses like mine have you closed in two years, and can I call those owners?
- Who works on my file day to day, and how will you keep it confidential?
- Are you licensed where your state requires it? The IBBA's find a broker page can filter for the Certified Business Intermediary (CBI) designation.
Take any listing agreement to your lawyer before you sign it.
What to do next
Gather three years of tax returns and profit and loss statements (see the documents buyers and lenders ask for), and list the add-backs a buyer may accept, meaning costs a new owner would not pay: personal costs run through the business, one-off bills, and your own pay (all of it if the buyer prices on seller's discretionary earnings, SDE; only the part above a manager's wage if on EBITDA, which charges a wage for your job). See what buyers accept as add-backs.
Then ask two or three brokers for an opinion of value and their fee terms in writing. If you already have a likely buyer, talk to your lawyer and CPA before you talk numbers with them.
See where your business stands
Our free readiness score takes about ten minutes. Fourteen questions, scored the way a buyer would weigh them, with the three gaps most worth fixing. Nothing you enter is shared with anyone.
Keep reading
- How to sell a small business: the steps, in order
- Checklist for selling a business: how to prepare it for sale
- Letter of intent to purchase a business: what's in it and what to negotiate
This guide is general information, not tax, legal or valuation advice. Every business is different: talk to your accountant, lawyer and broker about yours.