A bad broker can cost you time, money, and your best shot at a good deal. Choosing the right business broker is one of the most important steps in selling a business, yet many small business owners don’t know the right questions to ask a business broker. Not all business brokers have the experience, certifications, or buyer networks to close successfully. Some make big promises but can’t source buyers, vet prospects, or back up their asking price.
This guide shares 9 essential questions to ask a business broker, what each answer reveals, and how to use those insights to choose the right broker with confidence.
1. What’s Your Experience in My Industry?
An experienced broker with a track record in your industry is more likely to find the right buyer and avoid costly delays. Their deal history helps you judge how well they understand your business, its value drivers, and buyer expectations.
Why specific deal history matters
Asking how many businesses a broker has sold in your niche shows whether they’ve actually worked with companies like yours. For example, if you’re selling a manufacturing company, look for experience in selling businesses with similar complexity. A good business broker should be able to describe the sales process, deal structure, and challenges they’ve handled in past transactions.
Key phrases that signal real expertise
Key phrases often reveal whether you’re speaking with a professional business broker or someone unfamiliar with the full sales process. When interviewing, listen for specific language tied to real transactions, valuation techniques, and how they approach financing or vet buyers.
- “We based the asking price on business valuation using comps and adjusted EBITDA.”
- “We recast the financials to reflect true seller’s discretionary earnings.”
- “We presented seller financing options to help prospective buyers meet lender requirements.”
- “We sourced qualified buyers through a curated email list and targeted outreach.”
- “We handle the due diligence process with a checklist to avoid delays in closing.”
These phrases suggest the broker has handled real-world business sales and understands how to attract the right buyer and structure a good deal.
Red flags in vague or unrelated examples
Red flags often appear when a broker lacks direct experience in selling businesses like yours. Be alert if their answers feel too broad or if they shift focus to unrelated services like selling real estate instead of guiding business owners through a structured sales process.
- Mentions “real estate deals” instead of prior business sales or acquisitions
- Says “I’ve sold many businesses” but can’t name how many transactions or industries
- Describes buyers vaguely, with no proof they were qualified or serious
- Avoids giving a specific asking price or purchase price from past deals
- Talks more about listing volume than actual closings or success rate
A good business broker will speak clearly about their niche, deal history, and how they’ve helped clients sell their business to the right buyer.
2. How Do You Set the Listing Price?
A good broker will base your asking price on real data, not gut feeling. The goal is to attract buyers qualified to pay a fair price while protecting your upside.
Understanding comps and valuation multiples
Ask how the broker calculates your initial valuation. They should explain how they use comps—recent business sales in your industry and apply realistic valuation multiples based on earnings. If they subscribe to data services often used by members of the International Business Brokers Association, they may have access to solid benchmarks.
Why “recasting” expenses is a good sign
Recasting adjusts your financials to reflect true owner earnings. A certified business intermediary (CBI) will know how to remove one-time expenses or non-operational costs to show your business’s full earning power. This supports an accurate valuation that aligns with the current market conditions.
Signs of shallow or unclear pricing logic
Brokers who use weak or unclear pricing methods often cause delays, missed offers, or poor positioning in the market. Before trusting their numbers, look for these signs that their valuation process lacks depth or accuracy.
- They skip comps and can’t explain how the asking price relates to recent business sales
- They avoid discussing how the business valuation connects to your actual earnings or the seller’s discretionary income
- They set the listing price based only on what the business owner “wants to make”
- They don’t mention recasting financials or adjusting for one-time expenses
- They ignore market conditions or trends when recommending a pricing strategy
The right broker will walk you through a clear, data-backed valuation process and explain how their pricing attracts buyers qualified to pay a fair price.
3. How Will You Market My Business?
Marketing makes the difference between sitting on the market and closing with a strong offer. Ask how the broker plans to source buyers and present your business.
Importance of a multi-channel strategy
A professional business broker should use multiple channels: online marketplaces, private buyer lists, direct outreach, and industry-specific networks. This approach brings in different buyers and builds real demand, not just web traffic.
Differentiating between generic ads and targeted outreach
Generic ads can mislead or attract the wrong buyers, especially when the content lacks detail or fails to communicate real business quality. That’s why it’s important to ask what kind of marketing materials the broker will create, such as a Confidential Information Memorandum (CIM) and how they plan to personalize messaging based on buyer profiles.
A good business broker uses targeted outreach to connect with serious buyers, not just anyone who clicks a listing. Stronger messaging not only filters out unqualified interest but also signals value, even in competitive markets where misleading advertising content can distort buyer expectations.
Clues that indicate real marketing effort
A good business broker doesn’t rely on basic listings alone; they show clear effort in how they market each business. These clues can help you spot a broker who knows how to source buyers and create strong demand in the market.
- Shares actual marketing materials, like a sample CIM or targeted email campaign
- Mentions tailored messaging for different buyers, such as strategic buyers vs. financial buyers
- Has a clear plan for where and how they’ll list your business, including platforms used for manufacturing companies or small business owners
- Tracks and adjusts campaigns based on response rates, not just impressions.
- Can explain how their outreach helped attract qualified buyers and close past deals
Strong marketing gets your listing in front of the right buyer, not just more buyers.
4. How Many Qualified Buyers Do You Have?
You’re not looking for a big list; you’re looking for buyers qualified to close. Ask for details, not just numbers.
What “qualified” really means
Qualified buyers have the funds, background, and intent to follow through. A good business broker screens for financial ability, industry fit, and timing before making introductions. This cuts down on wasted calls and protects your time.
Interpreting buyer lists and personas
Ask how they define and vet buyers. Some brokers will even share buyer personas—such as corporate buyers, strategic buyers, or individuals with acquisition funding. This helps you see if they can find the right buyer for your business.
Common exaggerations to watch for
Some brokers try to impress with big claims, but vague promises often hide a lack of process or results. When evaluating a business broker, look out for these common exaggerations that may signal weak buyer vetting or a low success rate.
- Says “I have hundreds of buyers,” but can’t show how many buyers qualified or closed
- Promises “fast closings” without explaining the full sales process or diligence timeline
- Claims “we sell every listing,” but avoids talking about how many transactions they actually completed
- Uses terms like “ready buyer list” without proof of recent activity or updated buyer interest
- Avoids questions about how they vet buyers or manage the due diligence process
The right broker will focus on finding qualified buyers, not just collecting leads or inflating numbers.
5. What’s Your Average Time to Close?
Closing timelines vary, but experienced brokers will give a clear, data-backed estimate. Fast doesn’t always mean better if the process skips critical steps.
The truth behind “fast” timelines
Many brokers will claim quick closings, but that often means accepting the first low offer to close in 60 to 90 days. A strong broker will clarify how many transactions they’ve closed recently and explain how long it typically takes from listing to closing, including marketing, buyer vetting, and the due diligence period. Deals that close too fast often skip key steps and leave money on the table.
How does due diligence affects the closing period
The due diligence process takes time. A serious buyer will want to review financials, systems, and contracts before signing the sales contract. Ask how they prepare for this phase to prevent slowdowns later.
Why transparency on timing is a good sign
A professional business broker will explain the timeline from listing to close and highlight common bottlenecks. They should include details about vetting, buyer meetings, and the diligence process so you’re not left guessing.
6. How Do You Qualify Buyers Before Sharing My Info?
Protecting your financials starts with a strong screening process. A good broker doesn’t share your details with just anyone.
The importance of NDAs and proof of funds
Ask how the broker handles non-disclosure agreements and what they require before revealing confidential information. Proof of funds and signed NDAs should be non-negotiable for any serious buyer.
How brokers screen for seriousness and fit
A good business broker doesn’t just look at money; they also assess if the buyer has relevant experience and understands your industry. This helps avoid misalignment and wasted effort during the sales process.
Dangers of weak buyer screening
Skipping buyer screening is one of the most common mistakes a business broker can make. When evaluating a business broker, ask how they handle this step to avoid problems during due diligence and ensure your business data stays protected.
- Shares sensitive details without a signed non-disclosure agreement (NDA)
- Doesn’t ask for proof of funds before introducing buyers
- Introduces buyers without confirming their experience or industry fit
- Fails to explain their buyer vetting process clearly
- Prioritizes volume of inquiries over buyer quality and readiness
These red flags can lead to wasted time, broken trust, and failed deals. A good business broker will prioritize serious, qualified buyers from the start.
7. What Are Your Fees and When Are They Due?
Clarity on broker charges is key. You should know what you’re paying for, when it’s due, and what’s included.
Fee structure breakdown: commission, retainers, and more
Ask for a full fee structure, including the success fee, any retainers, and marketing costs. Most brokers charge a percentage of the sales price. Some also ask for upfront fees to cover listing costs or buyer outreach.
What to ask about marketing and extra costs
Find out if marketing materials, ads, or third-party services are included in the quote. Ask if you’re paying for email campaigns, video walk-throughs, or listing upgrades.
Warning signs in vague or delayed fee discussions
Clear and upfront conversations about broker charges are essential to avoid surprises during the sales process. Watch for these warning signs that a business broker may not be transparent about their fee structure.
- Doesn’t provide a written breakdown of their success fee, marketing costs, or commission
- Says “fees depend” without explaining what factors influence their pricing strategy
- Delays in answering questions about significant upfront fees or how they apply to the overall sales price
- Includes vague language about marketing expenses or additional charges in the engagement letter
- Can’t explain how and when the success fee or other broker charges are earned and due
A professional business broker will clearly define their fee structure and explain how each cost supports your business sale.
8. How Will We Communicate During the Process?
You need a broker who keeps you in the loop. Miscommunication can derail deals and create unnecessary stress.
The need for a consistent communication plan
Ask how the broker shares updates, tracks tasks, and avoids overlap across the process. Regular check-ins, structured tools, and shared timelines can help prevent deals from falling apart due to lack of clarity or misaligned expectations. Strong communication practices help ensure each step is handled smoothly and nothing gets missed, supporting clear coordination across complex business processes.
Preferred tools and reporting rhythm
A professional business broker may use project tools, CRM systems, or shared folders for documents. Consistent reporting means you’ll always know how many buyers are active, where the deal stands, and what comes next.
Avoiding miscommunication and radio silence
If one broker doesn’t offer a clear communication rhythm, that’s a concern. Radio silence causes missed deadlines and confusion. A good business broker prioritizes updates, especially when prospective buyers enter due diligence.
9. Can You Provide Client References?
Client references offer a clear picture of how a broker handles real deals, deadlines, and buyer issues. They help you confirm if the broker delivers results or just talks a good game.
What do quick responses say about broker confidence
If a broker shares references right away, that shows confidence in their track record. Most brokers with satisfied clients are happy to let their past work speak for itself.
Questions to ask the references themselves
Speaking directly with past clients can reveal how a business broker performs when the pressure is on. Use these focused questions to learn if they consistently delivered accurate valuations, found qualified buyers, and followed through on the sales process.
- How many businesses like yours did the broker help sell, and what was the final purchase price?
- Did the broker stay on schedule, or were there delays during the sales process or due diligence period?
- Were the prospective buyers properly screened and financially qualified before being introduced?
- How well did the broker handle challenges, like renegotiations or stalled deals?
- Would you work with this broker again or recommend them to other business owners?
These answers will give you a clearer picture of the broker’s success rate and how they manage real deals, not just their sales pitch.
Delays and dodges that should raise concerns
A broker’s hesitation to provide references often signals deeper problems with their past performance. If they dodge simple questions or delay sharing client contacts, these signs should raise immediate concerns.
- Takes more than a few days to provide client references without a clear reason
- Offers only outdated contacts or references unrelated to your industry
- Responds with vague statements like “my clients prefer not to be contacted”
- Deflects by offering testimonials instead of live reference calls
- Becomes defensive or changes the subject when asked about past client experiences
A good business broker should be prepared to back up their track record with clear, timely, and relevant references.
Choose Your Broker with Confidence
Asking the right questions reveals far more than a broker’s resume. It shows how they think, how they communicate, and how well they’ll guide you through the selling process.
By exploring their pricing strategy, buyer screening methods, track record, and fee structure, you can better judge whether they’re prepared to manage your business sale successfully. With the right business broker, you can attract qualified buyers, negotiate a fair price, and close with confidence.
Make every question count. It’s your business, your future, and your life’s work on the line.
Frequently Asked Questions
What questions should I ask before hiring a business broker?
Ask about their industry experience, buyer network, valuation process, fee structure, and how they qualify potential buyers.
How do I know if a broker is qualified to sell my business?
Look for standard industry certifications like Certified Business Intermediary (CBI) and a strong track record in selling businesses like yours.
What’s a normal fee for a business broker?
Most brokers charge a success fee of around 8% to 10% for smaller deals, with lower percentages or tiered pricing for larger transactions.
How long should a business sale take from start to finish?
The full business sale process typically takes 6 to 12 months, including marketing, due diligence, and closing.
Why is it important to check a broker’s references?
Client references confirm the broker’s success rate, communication style, and ability to close deals with qualified buyers.
References
- Delwiche, J. J. (2023). Revenue operations: Resolving miscommunication in modern business [Master’s thesis, University of Wisconsin–Stout]. Minds@UW. https://minds.wisconsin.edu/handle/1793/84872
- Gardete, P. M. (2013). Cheap-talk advertising and misrepresentation in vertically differentiated markets. Marketing Science, 32(2), 251–270. https://doi.org/10.1287/mksc.2013.0772
- Russell, L. B. (2002). Strategies for successfully buying or selling a business (2nd ed.). Quality Books, Inc. https://idahosbdc.org/wp-content/uploads/2023/11/Copy-of-Strategies-for-Successfully-Buying-or-Selling-a-Business.pdf
