Should I use a broker to sell my business?

This is a question we get asked all the time, and there's a reason it keeps coming up: the answer isn't always the same. For some businesses, a broker will comfortably earn their fee and then some. For others, the economics don't work, or the owner is better placed to manage the process themselves.

We're obviously not impartial here. Advising on business sales is what we do. But we'd rather give you an honest answer and earn your trust than pretend every business needs a broker. Some don't.

What does a business broker actually do?

At its most basic, a broker acts as the intermediary between you and potential buyers. But the scope of what that involves varies enormously depending on who you appoint.

A good broker will value your business using current market data and comparable transactions. They'll prepare an information memorandum that presents the business to buyers in a compelling but accurate way. They'll identify and approach potential acquirers, often proactively rather than simply listing the business on a marketplace and waiting. They'll manage confidentiality, screen out tyre-kickers, coordinate viewings and meetings, and handle the negotiation. They'll keep the process on track through due diligence and legal completion.

A less good broker will list your business on a portal, send you a few enquiries, and wait for the phone to ring. Some will take an upfront fee and then do very little. Others will undervalue your business to get a quick sale and secure their commission.

The difference between a good broker and a poor one is significant, and it's worth understanding before you commit.

When is a broker worth the fee?

Your business is worth more than £300,000 to £500,000. Below this threshold, the maths can be tight. Broker commissions in the UK typically range from 3% to 10% depending on the size and complexity of the deal, with smaller businesses generally paying higher percentages. On a £200,000 sale at 8%, you're paying £16,000. Whether that's justified depends on whether the broker can achieve a materially better price or a smoother process than you could manage yourself. Above £500,000, the value of professional management of the process, confidentiality, and competitive tension between buyers almost always outweighs the fee.

You don't already know your buyer. If you have a clear, willing buyer already (a competitor, a management team, a family member), you may not need a broker to find one. But you might still benefit from independent advice on valuation and deal structure.

Confidentiality matters. If your staff, clients, or competitors learning about the sale would cause damage, managing confidentiality is critical. A broker acts as a buffer, marketing the business anonymously and only revealing its identity to vetted, qualified buyers who've signed non-disclosure agreements.

You need to keep running the business. Selling a business is practically a second job. Responding to buyer enquiries, preparing information packs, coordinating diaries, chasing lawyers and accountants. If you're doing all of this while also running the business, something will suffer. A broker takes that workload off your plate.

You want competitive tension. A sale process with multiple interested buyers almost always produces a better outcome than a one-to-one negotiation. A broker's job is to create that competition, whether through proactive outreach, structured timelines, or managing parallel conversations with several parties.

Your sector has specialist buyers. In sectors like care, education, and professional services, the buyer pool is specific and often not visible on public marketplaces. A broker with sector experience will know who's actively acquiring, what they're looking for, and how to position your business to attract their interest.

When might you not need one?

Very small businesses. If your business is a sole-trader operation or a lifestyle business valued under £100,000, the costs of a broker can be disproportionate. Online marketplaces, local networks, or direct approaches to potential buyers may be more appropriate.

You already have a buyer lined up. If a competitor, employee, or contact has already expressed serious interest, you may not need a broker to find a buyer. You'll still need a solicitor and probably an accountant, and you may want an independent valuation, but the broker's core function of finding and managing buyers may not be necessary.

You're in no rush and happy to manage the process. Some owners are well-organised, commercially minded, and have the time to manage a sale themselves. It's not impossible to do this well, but it's worth being realistic about the time commitment and the risk of making mistakes, particularly around confidentiality and deal structure.

What should I look for in a broker?

If you decide to appoint one, choosing the right broker matters more than most people realise. A few things to consider.

Sector experience. A broker who understands your industry will value your business more accurately, know the buyer landscape, and present the opportunity in a way that resonates with acquirers. Generalist brokers can work for straightforward businesses, but for anything in a regulated or specialist sector, sector knowledge makes a real difference.

Track record. Ask for examples of businesses they've sold that are comparable to yours. Not just in size, but in sector and type. Ask for references from sellers who've completed a sale, not just listed. Anyone can take on an instruction. The question is whether they close deals.

Fee structure. Understand exactly what you're paying and when. Some brokers charge an upfront marketing or instruction fee plus a success commission. Others work on a pure success-fee basis. Neither model is inherently better or worse, but you should understand the trade-offs. A broker who charges no upfront fee has less financial risk but may also give your sale less attention if they have a large book of instructions. A broker who charges an upfront fee has skin in the game from day one, but you're paying regardless of the outcome.

UK broker commissions typically range from 3% to 10%, with most sitting between 4% and 8% for businesses in the £500,000 to £5 million range. Be wary of anyone quoting significantly outside this range in either direction. Very low fees may reflect a low-effort service. Very high fees need to be justified by demonstrable value.

Process. Ask the broker to walk you through their process, step by step. How do they identify buyers? How do they manage confidentiality? How do they handle viewings and negotiations? How do they keep you informed? A clear, structured process is a good sign. Vague answers or an over-reliance on marketplace listings suggest a passive approach.

Chemistry. This is a relationship that will last six to twelve months, possibly longer. You'll be sharing sensitive financial information, discussing your personal motivations, and relying on this person to represent your life's work to strangers. You need to trust them and feel comfortable being honest with them. If the initial conversation doesn't feel right, it probably isn't.

What should I watch out for?

A few red flags from real experience.

Inflated valuations to win the instruction. Some brokers will tell you your business is worth considerably more than it is, purely to get you to sign. The business then sits on the market for months at an unrealistic price, eventually selling for less than it would have if priced correctly from the start. If one broker's valuation is dramatically higher than the others, ask them to show you the comparable transactions that support it.

Long tie-in periods with no exit clause. Read the contract carefully. Some agreements lock you in for twelve months or more with no ability to terminate. If the broker isn't performing, you should be able to end the relationship within a reasonable notice period.

No clear buyer outreach strategy. If the broker's plan is essentially "we'll list it and see what happens," that's a passive approach that works for some businesses but not most. For anything above a few hundred thousand pounds, you want a broker who will proactively identify and approach potential buyers, not just wait for inbound enquiries.

Poor communication. You should hear from your broker regularly, with updates on buyer activity, feedback from viewings, and progress on the process. If you're chasing for updates, that's a problem.

How do I decide?

Start by getting a valuation, whether from a broker or independently. That gives you a baseline for understanding the economics: what the business might sell for, what a broker's fee would be, and whether the premium a broker could achieve justifies the cost.

If you'd like an initial indication of what your business could be worth, our free valuation calculator takes about two minutes and doesn't require any contact details. If the numbers look interesting and you'd like to explore the next steps, James is happy to have an honest conversation about whether appointing a broker makes sense for your particular situation, even if the answer turns out to be that it doesn't.