By Michael Shea | Transworld Business Advisors of Tampa Bay
Every business owner who has thought seriously about selling has asked some version of the same question: do I really need a broker, or can I handle this myself?
It is a fair question. You built the business. You understand it better than anyone. And the commission is real money — typically 8 to 12 percent of the sale price for smaller transactions. Why not keep it?
The honest answer is that the data does not support going it alone. Not on price, not on terms, and not on the probability of actually closing a deal. The gap between represented and unrepresented sellers is large enough, and consistent enough across multiple sources, that it deserves a serious look before you make the decision.
What the Numbers Actually Show
The most direct data point comes from Axial, one of the leading middle-market deal platforms in the country. Their research shows that business owners who self-represent have a 60 to 70 percent lower chance of successfully completing a sale than those who work with a broker or M&A advisor. That is not a marginal difference. That is the difference between a transaction that closes and one that quietly dies in due diligence or never finds a qualified buyer at all.
On price, leading third-party research cited by Axial shows that businesses sell for 6 to 25 percent more when the owner works with professional representation. The range is wide because the premium depends heavily on deal size, industry, and how competitive the buyer process is — but even the bottom of that range typically exceeds what a seller would save by avoiding a commission.
Businesses sell for 6 to 25 percent more with professional representation — and sellers who go it alone have a 60 to 70 percent lower probability of closing a deal at all.
The real estate world has even more granular data, and the dynamics translate directly. FSBO listings — For Sale By Owner — consistently sell for less than professionally listed properties, and FSBO sellers are significantly less likely to report satisfaction with their final price. The mechanism is the same in both markets: a seller negotiating alone, without market intelligence or competitive leverage, is at a structural disadvantage against a buyer who does this for a living.
Why the Gap Exists
It is not that business owners are unsophisticated. Most of them are excellent operators. The problem is that selling a business is a different skill set than running one — and buyers know it.
An unrepresented seller signals to the market that the deal is likely easier to push around. Buyers who encounter a solo seller will probe harder on price, ask for more seller financing, push for longer earnout periods, and be more aggressive on representations and warranties. They are not doing anything unethical. They are reading the situation correctly.
A represented seller sends the opposite signal. A professional broker tells the buyer that the seller has counsel, that the financials have been properly recast, that there is a structured process underway, and — critically — that there are likely other buyers in the conversation. Competition is the single most powerful driver of price in any transaction. Without a broker, most sellers never create it.
The Unrepresented Seller’s Other Problem: Buyer Pool
Where do qualified buyers look for businesses? They search BizBuySell, BizQuest, DealStream, and the major listing platforms. They work with brokers who have buyer databases and can match them to new opportunities confidentially. They respond to outreach from advisors who know their acquisition criteria.
A business that is quietly shopped by its owner — through a personal network or an informal listing — reaches a fraction of that market. The seller gets a few bites from people who happened to find it, not a structured process designed to identify the most motivated, most qualified buyer and create competitive tension around the deal.
Transworld Business Advisors, for example, markets listed businesses to over 350,000 buyers in its proprietary database, across more than 100 websites, through a network of over 1,000 brokers in 250 offices worldwide. A seller going it alone is not just negotiating from a weaker position — they are fishing in a pond instead of the ocean.
5 Things to Look For When Choosing a Business Broker
Not all brokers are equal. Choosing the right one is as important as choosing to use one in the first place. Here is what actually matters:
| 1 | They Market as Widely and Deeply as Possible
This is the most important question to ask any broker: where will my listing go, and how many qualified buyers will actually see it? A broker’s value is directly proportional to the size of the market they can reach. The wider the listing distribution — national platforms, proprietary buyer databases, co-brokerage relationships with other firms — the more competitive pressure on buyers, and the better the outcome for you. Transworld, as the world’s largest business brokerage organization with 250 offices, 1,000+ brokers, and over 350,000 buyers in its database, was built specifically around this principle. Ask any broker you interview to walk you through their specific marketing plan and the platforms they use. A vague answer is a red flag. |
| 2 | They Co-Broke Willingly and Split Commissions 50/50
Co-brokerage means the listing broker is willing to work with outside brokers who represent buyers — splitting the commission in exchange for bringing a qualified purchaser to the table. Many brokers claim to co-broke but resist it in practice because it means sharing their fee. This is the wrong incentive for a seller. A broker who co-brokes openly is effectively doubling or tripling their reach. Ask directly: do you co-broke, and do you split 50/50? The answer tells you whose interests they are protecting. |
| 3 | They Charge No Upfront Fees
A reputable business broker gets paid when you get paid — at closing. Any broker who asks for a significant upfront listing fee before a transaction closes has misaligned incentives. They have already earned something whether or not the deal closes. That is not how serious brokerages operate. Success-based compensation means the broker is motivated to close at the highest possible price, not just to collect a listing fee and move on. |
| 4 | They Have a Verifiable Track Record in Your Industry and Deal Size
A broker who primarily sells retail businesses is not the same as one who regularly closes deals in professional services, construction, or manufacturing. Ask for closed transactions in your industry and your revenue range. Ask about average days on market. Ask what percentage of their listings result in closed deals. The answers reveal whether you are talking to someone with genuine experience in your type of transaction or a generalist who will figure it out as they go. |
| 5 | They Will Tell You the Truth About Value — Including If It Is Lower Than You Want to Hear
The most dangerous broker is the one who tells you what you want to hear about price in order to win the listing. This practice — known as “buying the listing” — sets up a transaction that will either never close or require painful price reductions after months of wasted time. A good broker will walk you through the valuation methodology honestly, show you comparable transactions, explain the multiple range for your industry, and give you a realistic number. If a broker’s opinion of value is dramatically higher than every other conversation you have had, ask them to show their work. |
A Final Word on Timing
The best time to engage a broker is before you feel the urgency to sell. Sellers who come to the table under pressure — from burnout, health issues, a business downturn, or a partnership dispute — have less leverage and fewer options. Buyers can smell urgency, and they price it in.
If you are two or three years out from a potential sale, a conversation with a broker now costs you nothing and gives you a realistic picture of what the business is worth today, what would make it worth more, and how to position it for the best outcome when the time is right. That kind of preparation is often worth more than any single negotiating tactic at the closing table.
The data on represented versus unrepresented sellers points in one direction. The question is not whether to use a broker. The question is which one.
Michael Shea represents the Tampa Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 450 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential.