Broker role and fee guide
What do business brokers actually do?
A broker may help prepare, position and manage a business-sale process, but services and fees vary. The useful question is not whether every broker is worth a commission; it is whether a particular broker's relevant work, process and terms justify the proposed cost.
The broker's role before marketing
A broker may review sale readiness, clarify the proposed sale package, discuss market conditions and help prepare information for suitable buyers. The broker should also identify facts that require specialist accounting, tax or legal advice rather than pretending one profession can do everything.
- Sale-readiness review
- Information preparation
- Buyer and market positioning
- Confidentiality process
Finding and screening potential buyers
Depending on the engagement, a broker may approach suitable buyers, manage enquiries, protect identifying information, request evidence of financial capacity and coordinate next steps. Ask how buyers are sourced and screened, not merely how large the broker's contact list sounds.
Managing the transaction process
A broker may organise meetings, coordinate offers and keep communication moving between the seller, buyer and professional advisers. The broker does not replace independent legal, accounting or tax advice.
Common components of broker fees
Engagements may include a commission, retainer, preparation charge, advertising budget or other fixed costs. Ask which costs are payable upfront, which depend on a transaction, whether tax is included and what happens if the engagement ends.
- Commission basis and calculation
- Minimum fee
- Upfront or monthly costs
- Advertising expenses
- Exclusivity period
- Termination and tail provisions
How to assess value without relying on promises
Compare the broker's relevant sector work, deal-size experience, process, buyer-screening standards, reporting cadence and engagement terms. LeadHarbour does not claim that a broker will achieve a particular price or percentage increase.
LeadHarbour's seller cost
LeadHarbour charges sellers $0 to opt in, review broker options or approve an introduction. A broker may propose a separate engagement if you choose to appoint them. Sellers remain free to decline every option.
Questions to ask before appointing a broker
Request clear written answers before signing.
- Which similar businesses have you worked with?
- Who will personally manage the assignment?
- How will confidentiality be protected?
- How are potential buyers screened?
- What fees apply even if no sale completes?
- What exclusivity, notice and post-termination terms apply?
- How will progress be reported?