No, you don't need a broker to buy a business. Most business brokers represent the seller and are paid a commission by the seller, so their duty is to the other side of the table. Buyers can find and buy businesses directly, and many great deals are brokered listings you approach on your own. What you do need is your own independent team, an attorney and an accountant or quality-of-earnings provider, because the seller's broker isn't looking out for you.
Whose side is the broker on?
In most small-business transactions, the broker has a listing agreement with the seller and earns a commission, commonly around 10% on smaller deals, out of the sale proceeds. That's a perfectly normal arrangement, but it means their incentive is a completed sale at a good price for the seller.
| Role | Represents | Paid by |
|---|---|---|
| Listing (sell-side) broker | The seller | Seller (commission) |
| Buy-side broker / advisor | The buyer | Buyer (fee/commission) |
| Your attorney | You | You |
| Your accountant / QoE | You | You |
Going direct as a buyer
Plenty of buyers source deals themselves, through brokered marketplaces, industry networks, and direct outreach to owners (off-market). Going direct can mean less competition and no buy-side fee. See sourcing tactics in finding businesses for sale and the full path in how to buy a business.
You don't need someone to hand you a deal. You need people who protect you once you've found one.
The team you actually need
- Attorney, drafts and reviews the purchase agreement and protects your interests.
- Accountant / QoE provider, verifies the earnings you're paying for.
- SBA lender, finances the deal; a good one flags problems early.
- Optional buy-side advisor, helps source off-market deals and negotiate, paid by you.
Frequently asked questions
No. Most brokers represent the seller and are paid by the seller. Buyers can find and buy businesses directly, including brokered listings, but should rely on their own attorney and accountant.
Usually the seller, out of sale proceeds, commonly around 10% on smaller deals. Because the seller pays, the broker generally works for the seller's outcome. A buy-side advisor hired by the buyer represents the buyer.
Yes, an attorney to review contracts and an accountant or QoE provider to verify the numbers, since the seller's broker doesn't represent you. Some buyers also engage a buy-side advisor to source off-market deals and negotiate.
