You’ll spend months working closely with your broker on the most consequential financial event of your career. Their judgment, network and honesty will shape the outcome. So hire carefully.
Where to find candidates
- Your CPA and attorney. They’ve seen brokers in action and know who closes deals cleanly.
- Your banker or SBA lender. Lenders see which brokers bring well-prepared deals.
- Owners who have sold. Ask what went well and what they’d change.
- Industry associations. Some brokers specialize in specific industries.
- Professional associations. Business broker associations list members, some with designations that require training and experience.
What to look for
Relevant experience
Recent sales of businesses similar to yours in size, industry and complexity. A broker who sells restaurants all day may not be the best fit for an industrial services company.
A realistic valuation
The broker who quotes the highest price isn’t necessarily the best. Ask how they reached their number and what comparable sales support it. Honest brokers explain risks and ranges. See business valuation methods.
A clear marketing plan
Who will they contact? Through which channels? How will they protect confidentiality? How will they screen buyers?
Buyer reach
Do they have relationships with the types of buyers most likely to want your business — individuals, competitors, private equity, operator-buyers?
Deal management
How will they keep diligence, financing and legal work on track? Who on their team does the day-to-day work?
Communication
How often will you get updates? Will you hear about every buyer inquiry?
Fair terms
Reasonable fees, term length, tail clause and exclusions. See business broker fees.
Interview questions
- How many businesses like mine have you sold in recent years?
- What happened with the last few listings that didn’t sell?
- How did you arrive at your view of value?
- Who do you think the most likely buyers are, and how will you reach them?
- How will you protect confidentiality, especially from my employees and competitors?
- How do you screen buyers before sharing information?
- Who will actually work on my sale day to day?
- What will you need from me, and how much of my time?
- What are the most common reasons your deals fall apart?
- Can I speak with sellers you’ve represented — including one where the deal was hard?
Red flags
- Pricing to win the listing. An inflated valuation that leads to a stale listing.
- Pressure to sign quickly.
- Unclear or unusual fees.
- Long exclusivity and broad tail clauses with no willingness to negotiate.
- No industry or size fit.
- Weak screening — sending your information to anyone who asks.
- Poor references or reluctance to provide them.
- No questions about your goals beyond price.
Checking references
When you call past sellers, ask:
- How close did the final price and terms come to what the broker projected?
- How long did the sale take?
- How did the broker handle problems?
- Was confidentiality maintained?
- Would you hire them again?
Comparing finalists
Use a simple scorecard: experience fit, valuation credibility, marketing plan, buyer reach, deal management, communication, terms and trust. Weight what matters most to you. If two brokers score closely, choose the one you trust more in a hard conversation, because there will be hard conversations.
Licensing and South Carolina
In South Carolina, a 1997 Attorney General opinion addressed business brokers and real estate licensing: a broker without a real estate license can be compensated on the business’s personal property but not on real property in the deal. If your sale includes real estate, ask the broker how they handle that portion and confirm with your attorney. See sell a business in South Carolina.
Prepare before you hire
The more prepared you are, the better broker conversations go. Clean financials, documented add-backs, an organized contract file and a clear sense of your goals make it easier for a broker to give you a realistic value opinion and plan. They also signal to the best brokers that you’re a serious seller worth prioritizing. See prepare a business for sale.
Your goals belong in the agreement too
Before you interview anyone, write down what a great outcome looks like for you: the kind of buyer you’d be proud to hand the business to, the role you want after closing, how your key people should be treated, your timeline and the minimum terms you’d accept. Share that list with every broker you interview. Their reaction tells you whether they’ll represent your whole goal or just the price.
Or start with a buyer conversation
Some owners talk with a direct buyer before choosing a broker, just to understand how a buyer sees their business. I’m happy to have that conversation with South Carolina owners whose businesses might fit what I buy. I’m a buyer, not a broker, and I’ll tell you honestly if a broker would serve you better.
Next steps
Review business broker and selling a business step by step. When you’re ready to talk, start a confidential conversation.
Questions people ask
How do I find a good business broker?
Ask your CPA, attorney, banker and other owners who have sold. Look for brokers with recent sales of businesses similar to yours in size and industry, interview several and call references from sellers they represented.
How many business brokers should I interview?
Several. Interviewing a few shows you the range of valuation opinions, marketing plans and terms — and makes it easier to spot a broker who is overpromising.