Broker or DIY?
Selling with or without a broker
One decision shapes your whole sale. Here's how to make it, from someone who's sat on both sides of the table.
Should you use a broker to sell your business?
If you've never sold a business before, YES. Use the best broker you can find and pay the commission happily.
But there's a catch.
Many brokers won't take on a business that makes less than $200,000 to $250,000 a year for the owner. Then selling it yourself is your only option.
Either way, the rule is the same:
Get yourself and the business READY FOR SALE before you decide anything.
Ready first. Then sell.
When I was a broker, one business owner came to my Business Ready For Sale half-day workshop.
Then he came back. Two years later.
In between, he'd made changes. After the second workshop, he engaged me to help him get the business ready for sale over the next two to three years.
We spent two and a half years on it. Freeing him up from the business. Making it attractive to buyers.
Then we put it on the market.
It sold for a VERY good price. Quickly. Easily.
No luck involved. Just preparation.
Build it as if you're going to keep it forever but could sell it tomorrow.
Why use a broker?
When I sold my own business, I used a broker.
I paid the commission. And I ENJOYED paying it.
Why? Because a good broker earns every cent. Here's what they do that most owners can't:
- Value the business properly. Most owners have no idea what their business is really worth.
- Find buyers. Owners don't know where serious buyers are, or how to reach them.
- Handle the contracts and legal process. One wrong clause and you've got problems after settlement.
- Stay objective. You're emotionally attached to the business. The broker isn't.
- Do the legwork. You're busy running the business. Selling it is a second full-time job.
- Present the business so it looks its best in the eyes of a buyer.
- Negotiate. Plenty of owners hate haggling. A broker does it every day.
- Filter out the tyre kickers. Non-serious buyers eat your time and your nerves.
- Evaluate offers and structure the deal. The highest price isn't always the best offer.
- Create competition between buyers. That's what pushes the price up.
- Put buyers at ease. Buyers feel more comfortable dealing with an experienced broker.
- Keep it confidential. Word gets out to staff, clients, suppliers or competitors when owners sell it themselves. That can do real damage.
One more thing. Pick a broker who knows YOUR type of business. A broker who sells cafés isn't the right fit for an engineering workshop.
Not sure who to pick? That's where I come in. I work alongside selected brokers, and I'll help you choose the right one for YOUR business.
Good broker, good fit, good outcome. Don't settle for less.
What if no broker will take you on?
Here's the hard truth.
If your business makes less than $200,000 to $250,000 a year for the owner, many brokers will say no.
It's not personal. Selling a small business often takes more work and more time, and there are fewer buyers in the market. The broker's fee on these businesses just isn't worth the effort.
What do brokers charge? Typically an upfront marketing fee, plus around 5% of the total sale price as commission on settlement. On smaller businesses, the commission percentage is often higher. (See the FAQ: Why won't a broker take on my business?)
So you're left selling it yourself.
And that's exactly where most owners get stuck.
Brokers usually ignore this group. I don't.
"Sell your business fast. No fees!" Really?
You've seen the ads.
"Sell your business fast. No broker fees. Just fill in this form."
Sounds easy. Fill in a form, wait for the cheques.
WRONG!
Selling a small business is nowhere near as quick, easy or cheap as those online platforms want you to believe.
Listing your business online is like putting a "For Sale" sign on a car with no rego, no service history and a dodgy gearbox. Sure, people will look. Very few will buy. And the ones who do will want it for a song.
Here's what you're actually signing up for:
- Time. Lots of it, while you still run the business.
- Emotion. It gets personal. Every low offer feels like an insult.
- Distraction. Take your eye off the business and the numbers drop. Then so does the price.
- Marketing. How will buyers even know it's for sale?
- Tyre kickers. Plenty of "interested" people who never had the money.
- Competitors. Some "buyers" are just after a look at your numbers.
Selling it yourself costs less in fees. It costs MORE in preparation. Do the preparation.
When selling it yourself DOES work
Now the good news.
Selling it yourself can work very well. When it does, it's usually because:
- You and the business are well prepared. Numbers clean, systems documented, risks sorted.
- You already have interested buyers. A staff member, a supplier, a competitor or a family member has put their hand up.
- You've got the right professionals in your corner. An accountant and a lawyer who know business sales.
- You know the process. Every step, in the right order. No shortcuts.
That last one matters most. Skip a step and the buyer can come back at you after settlement.
That's where I come in. I help you get ready, then walk you through the process step by step.
Broker vs selling it yourself: side by side
| Using a broker | Selling it yourself | |
|---|---|---|
| Cost | Upfront marketing fee + around 5% commission on settlement (often higher on smaller businesses) | No commission. Legal and accounting fees still apply |
| Your time | Lower | HIGH |
| Finding buyers | Broker's database and marketing | You market it yourself |
| Valuation | Broker's appraisal | You need a realistic number. Guessing costs money |
| Negotiation | Done for you | Done by you |
| Confidentiality | Easier to protect | Harder to protect |
| Best for | Owners new to selling, bigger businesses | Well-prepared owners, smaller businesses, sales with a buyer already lined up |
| Preparation needed | ESSENTIAL | ESSENTIAL |
Look at the last row.
Broker or no broker, preparation isn't optional.
The 10-step process to sell your business
This is the general process for a small to medium business sold as an asset sale. Selling the company itself (a share sale) is more complex and takes longer.
- Get ready for sale. Get yourself and the business READY before you start. Not during. BEFORE.
- Understand the process. Know every step and allow plenty of time.
- Choose an asset sale or a company sale. This affects tax, contracts and timing. Get advice.
- Choose a broker or sell it yourself. Now you've got the facts to decide.
- Prepare an Information Memorandum. This document sells your business on paper. A good broker writes one for you.
- Find genuine buyers and sign NDAs. No Non-Disclosure Agreement, no numbers. Ever.
- Receive and assess offers. Price, terms, conditions and the buyer's ability to pay.
- Negotiate the contract of sale. Get your lawyer involved early.
- Work through due diligence. The buyer checks everything. Clean books make this painless.
- Settle. Hand over the keys, get paid, no comebacks.
Notice where step one sits?
Everything starts with being ready for sale.
FAQ: selling with or without a broker
Do I need a broker to sell my business in Australia?
No. You can legally sell your own business. But you need to know the process, and you need a lawyer and an accountant who understand business sales.
Why won't a broker take on my business?
How much do business brokers charge?
Is it cheaper to sell my business myself?
What's the biggest risk of selling a business privately?
What's the difference between an asset sale and a company sale?
What should I do before I decide?
Before you call a broker, call me
I'm not a broker. I'm the step BEFORE the broker.
A good broker sells what you've got. I help you build what's WORTH selling first.
When you're ready, you choose: a broker, selling it yourself, or keeping it.
If your business is profitable enough for a broker, I'll help you pick the right one. I work alongside selected brokers. And after 12 years as one, I know what a GOOD one looks like.
Get ready first. Then decide.
Not sure where you stand? Start here.
Broker or no broker, the first step is the same.
Find out how ready your business really is.
The Scorecard takes under 5 minutes and gives you an instant score. Or book a no-obligation chat: tell me where you're at and I'll tell you straight.
Your Scorecard tells you WHERE you stand. The Sale-Ready Assessment tells you exactly WHAT to fix, and in what order. Want to know who you'd be working with? Read my story.
A business that's ready for sale is well worth keeping.