What does a business broker do?
What a business broker does for sellers and buyers, how brokers are paid, how they differ from M&A advisors, and how to choose one in Texas.
A business broker helps owners sell their businesses and helps buyers acquire them. For sellers, a broker values the business, prepares a confidential marketing package, finds and screens buyers, negotiates terms, and manages due diligence and closing. Most sell-side brokers are paid a success fee only when the sale closes. Brokers usually work with small and lower-middle-market businesses; M&A advisors run similar processes for larger companies.
For sellers
Valuation and pricing; preparing financials and add-backs; writing the confidential information memorandum; marketing on a no-names basis; screening buyers for funding and fit; running multiple buyers in parallel; negotiating the letter of intent; and coordinating diligence, financing, attorneys, and closing so the owner can keep running the business.
For buyers
Some brokers, including Delta Brokers, also represent buyers: defining an acquisition thesis, sourcing on- and off-market businesses, valuing targets, and managing diligence and closing. See buying a business with Delta.
How brokers are paid
Sell-side brokers typically charge a success fee, a percentage of the sale price paid at closing, sometimes with a minimum fee. Some also charge upfront retainers or monthly fees. Always compare the total cost at your expected price. See business broker fees in Texas and our published fees.
Business broker vs. M&A advisor
The work is similar; the scale and process differ. Brokers usually handle Main Street businesses through listings and buyer networks, while M&A advisors run targeted, auction-style processes for companies with roughly $1 million or more of EBITDA. See lower-middle-market M&A.
How to choose a broker
Ask who will work your deal each week, how many qualified buyers they reach and how, how they value a business, whether they work in Spanish and with cross-border buyers, and every term in the engagement letter. See franchise vs. independent brokers.