The short answer: You have three paths as a buyer: source deals off-market direct with no broker involved, work with the seller's listing broker (which typically costs you nothing), or hire your own buy-side advisor (which you pay for). Most self-funded Main Street buyers do not need to hire their own broker, a buy-side advisor earns its fee more often on larger or more complex deals. Whichever path you choose, an attorney and an accountant on the deal are non-negotiable. See the full off-market sourcing guide.
The three paths for buyers
Every buyer ends up on one of three tracks, and you can mix all three during a search:
- Off-market direct: You find and approach owners yourself, with no broker on either side. No commission, but you do all the sourcing and outreach work.
- Listing brokers: You respond to businesses a broker has already listed for sale. The broker works for the seller and is paid by the seller, so this path is typically free to you.
- Your own buy-side advisor: You hire someone to work only for you, sourcing deals, screening sellers, and negotiating on your behalf. You pay them, usually a retainer and/or a success fee.
When you don't need your own broker
If you're a self-funded buyer targeting a Main Street deal, roughly under $2 to 3 million, and you're willing to put in the search time, you generally don't need to hire your own broker or advisor. Listing brokers will show you deals for free, and a motivated buyer with a clear buy-box and fast follow-through can source off-market opportunities directly. The savings from skipping an advisor's fee are real money you can put toward the down payment instead.
Where your time goes instead
Skipping a buy-side advisor means you take on the sourcing and screening work yourself. Build a simple off-market sourcing routine and lean on brokers who already list deals in your target range.
When a buy-side advisor helps
A paid buy-side advisor earns their keep on larger, more complex, or highly competitive deals, think multi-location businesses, deals with real estate or franchise structures, or searches where you simply don't have the bandwidth to source and vet dozens of opportunities yourself. An advisor can also help a first-time buyer avoid rookie mistakes in negotiation and structuring. The trade-off is straightforward: you're paying for speed, expertise, and deal flow you couldn't easily get on your own.
Compare that against hiring your own M&A advisor versus using a listing broker, the roles and fee structures are different, and understanding both helps you decide if the cost is worth it for your specific deal.
The team you need either way
Regardless of which sourcing path you choose, two professionals are essential on every deal: a transaction attorney to review the purchase agreement and legal structure, and an accountant or CPA to verify the financials and advise on tax structure. Neither a listing broker nor a buy-side advisor replaces either of these roles, a broker in particular usually represents the seller, not you.
Skipping a broker is optional. Skipping your own attorney and accountant is not.
I bought my first business without hiring my own broker or advisor, but I never once considered skipping the attorney and the accountant, and I'd tell any buyer the same thing today.
Which path fits your situation
| Your situation | Best path | Who you pay |
|---|---|---|
| First deal, Main Street size, time to search | Off-market direct + listing brokers | No broker fee to you |
| Comfortable responding to listed deals | Work with listing brokers | Seller pays the broker |
| Larger, complex, or highly competitive deal | Hire a buy-side advisor | You pay retainer/success fee |
| Limited time to source and screen deals | Buy-side advisor for sourcing help | You pay retainer/success fee |
Build your own deal flow
Start with the off-market sourcing playbook, then score whatever lands in your inbox.
Frequently asked questions
Most self-funded buyers on Main Street deals do not need to hire their own broker. You can buy off-market directly or work with the seller's listing broker at no cost to you. A buy-side advisor becomes more useful on larger, more complex, or heavily competitive deals.
A listing broker represents the seller and is paid by the seller, so their duty is to get the seller the best price. A buy-side advisor works only for you, the buyer, and you pay them directly, usually through a retainer and/or a success fee, in exchange for sourcing, screening, and negotiation help.
Yes. An attorney and an accountant (or CPA) are essential on every deal regardless of whether you hire a broker or advisor. They review contracts, verify financials, and protect you in ways a broker, who typically represents the seller, will not. See what closing involves.
A buy-side advisor makes the most sense on larger deals, complex industries, or when you want dedicated help sourcing off-market opportunities and running a structured search. For smaller, straightforward Main Street deals, most experienced self-funded buyers skip the added cost. See M&A advisor vs broker.
Sources
- Buy-side advisor engagement structure and fees, Raincatcher broker/advisor role breakdown.
- Buy-side search and advisor guidance, Rejigg lower-middle-market advisor directory.
- Deal-team essentials (attorney, CPA) for small-business acquisitions, general SBA acquisition-lending and closing-process guidance.
