Can You Sell a Business Without a Broker?

Brokers aren't essential when completing the sale of your business. In fact, it's possible to handle the sale of your business yourself and save the broker's commission — typically 10 percent of the final sale price — particularly if you have a buyer in mind, such as an employee or relative, and you feel comfortable working on the sale of your business with your current lawyer and accountant.

Regardless of whether or not you hire a broker, you'll do a lot of the selling work yourself. Prospective buyers will have questions, and no one knows your business better than you. As a result, the buyer and seller of a business, unlike the buyer and seller of a house, will almost always meet.

On the other hand, using a broker does offer several benefits. Having a broker manage the sale of your business allows you to keep the pending transaction under wraps. This can prevent potentially alienating your customer base, employees, and other important business relationships. Using a broker allows you to focus on running your business until the sale goes through and can save you a lot of headaches.

In addition, some prospective buyers may be more comfortable dealing with a broker rather than directly with the owner, particularly in the initial stages of a deal. Many people interested in buying their own business will contact a business broker, tell them what type of business they're looking for, and see what's available. The broker tries to match the prospective buyer with the best possible business. This means a good broker should have a solid pool of potential buyers right off the bat. But remember to do your homework when it comes to finding the right broker: some are better — and worse — than others. Check references and follow your instincts.