Use a business broker or sell directly?

A business broker values, markets and negotiates the sale of smaller businesses. A direct buyer is one of the buyers a broker would call. Here is how to choose.

Email a short overview How the process works

Contents7.1Should I use a business broker?1 / 4

§ 7.1

Should I use a business broker?If you want help and competition.

Fig. 7.1Short answer

Use a broker when you want help with valuation, preparation and negotiation, and you are willing to pay a success fee. Sell directly when you know the kind of owner you want and you are ready to run a simple process with a lawyer’s help.

Brokers work for the seller and are paid when the sale completes.
Check exclusivity and its length before you sign with a broker.
A direct sale still needs clean records and a good lawyer.

§ 7.2

Broker and direct sale compared.Typical patterns.

Fig. 7.2aThe broker path, next to the others

Fig. 7.2bBusiness broker and direct sale

	Business broker	Direct sale to Playbook Media
Preparation	The broker helps prepare a listing and a valuation.	A short overview to start. Records only if there is a fit.
Buyers	Several, found by the broker.	One: us.
Cost	A success fee, usually a share of the price.	No fee to us.
After the sale	Depends on the buyer the broker finds.	A long-term owner and an agreed transition plan.

§ 7.3

When each path fits.An honest list.

Use a broker when

You do not know what the business is worth.
You want several buyers to compete.
You do not have time to run the process.

Sell directly when

You have clean records and a realistic price in mind.
You care most about the next owner.
You want to keep the sale private.

§ 7.4

Questions founders ask.Short answers.

Can I talk to you while my business is listed?

Yes, through your broker or directly, as your broker agreement allows.

What does a broker’s valuation mean?

It is an estimate to set an asking price. Offers follow each buyer’s own review.

Is a broker worth the fee?

It can be, when competition raises the price by more than the fee or when you need the help. Ask for references from past sellers.

1Patterns vary between firms. This page describes common practice in general terms. It is not legal, tax or financial advice. ↩
2Playbook Media has reviewed businesses and made offers, but no acquisition has completed yet. Weigh that when you compare us with buyers who have. ↩

End of comparison

Next comparisonSoftware holding companiesHow Playbook Media compares with other companies that buy and keep software businesses, including where we are not strong yet.