When retiring business owners begin thinking about selling, one of the first decisions they face is whether to hire a business broker or try to sell the company themselves. On the surface, selling the business on your own may seem appealing — no commission, no middleman, no need to involve another professional. But once owners begin to understand the complexity of a business sale, the risks of going it alone become much clearer.
Selling a business is not like selling a car or even a house. It’s a sophisticated, multi‑stage transaction involving valuation, financial analysis, marketing, negotiation, legal structure, tax strategy, and due diligence. The stakes are high, confidentiality is critical, and the margin for error is small. Whether or not to use a broker is one of the most important decisions you’ll make in your exit strategy.
Here’s a clear, balanced look at the pros and cons — and what retiring owners should consider before choosing a path.
The Case for Using a Business Broker
1. Brokers Protect Confidentiality
Confidentiality is essential. If employees, customers, or competitors learn the business is for sale too early, it can cause instability. Brokers know how to market the business discreetly, screen buyers, and require NDAs before releasing sensitive information.
2. Brokers Know How to Value Your Business
Most owners undervalue or overvalue their business. Brokers use market data, industry multiples, and adjusted EBITDA to determine a realistic price. A properly priced business attracts more buyers and sells faster.
3. Brokers Bring Qualified Buyers
Brokers maintain networks of buyers — individuals, investors, competitors, and private equity groups. They know who is actively looking and who has financing in place. This dramatically increases your chances of finding the right buyer.
4. Brokers Handle the Heavy Lifting
Selling a business requires:
Preparing a confidential information memorandum (CIM)
Marketing the business
Screening buyers
Managing inquiries
Coordinating due diligence
Negotiating terms
Most owners don’t have the time or expertise to manage this while still running the business.
5. Brokers Increase the Sale Price
Studies consistently show that businesses represented by brokers sell for higher multiples. A broker’s negotiation skills, market knowledge, and buyer pool often more than offset their commission.
The Case for Selling It Yourself
There are situations where a DIY sale may make sense:
You already have a buyer (e.g., a family member or key employee)
The business is very small or primarily asset‑based
You are comfortable negotiating directly
You want to avoid paying a commission
Even in these cases, owners should still work with an attorney and CPA to structure the deal properly.
The Risks of Going It Alone
Owners who try to sell without a broker often encounter:
Pricing mistakes
Confidentiality breaches
Unqualified buyers
Poor negotiation leverage
Delays in due diligence
Deals falling apart at the finish line
The biggest risk is leaving money on the table — or worse, failing to close at all.
The Bottom Line
For most retiring owners, using a business broker is the safest, most efficient, and most profitable path. Brokers bring expertise, confidentiality, and negotiation strength that owners simply can’t replicate on their own. While a DIY sale may work in limited situations, the complexity of the process — and the financial stakes — make professional guidance invaluable.
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