A great broker can help you sell your business faster, for more money, and with fewer risks. But the wrong one can cost you time, deals, and trust. Before you commit, broker reference checks are one of the most reliable ways to verify a broker’s performance, follow-through, and overall fit. These checks uncover gaps that polished sales pitches and brochures often hide.
This article gives you a clear, step-by-step guide, with sample questions, scorecards, and checklists from our vetted toolkit, to help you make a confident and well-informed decision.
Why Broker References Matter
Conducting reference checks gives you a direct look into how brokers actually work—not just how they sell themselves. These conversations help you verify claims, assess risk, and uncover background details that firms don’t always disclose up front.
Real-world insight vs. polished marketing
Most brokerage firms promote strong track records, fast timelines, and wide buyer networks. But the truth behind those claims often depends on the broker, not the organization. Reference checks help confirm whether brokers followed through on marketing strategies, supported employees throughout the process, and maintained timely communication. Speaking to past clients is more reliable than relying on company brochures or job titles alone.
What reference checks reveal that sales pitches don’t
Sales presentations are often polished and idealized. They rarely mention missed deadlines, communication breakdowns, or operational challenges. What they leave out are the practical realities of how brokers perform in high-pressure, real-world conditions.
Conducting reference checks gives you a clearer view of the broker’s actual role. A broker is not just a salesperson but also a mediator who must navigate competing interests, manage changing priorities, and coordinate across diverse stakeholders. These conversations often uncover issues such as limited buyer outreach, weak employment verification, or poor follow-through that are not typically disclosed during a sales pitch.
References also provide insight into how brokers operate within the cultural and organizational dynamics of their firm. You may learn how supervisors and team members either helped move the deal forward or created delays behind the scenes. This kind of firsthand feedback is especially useful when evaluating brokers working in regulated industries, such as those overseen by the Financial Industry Regulatory Authority (FINRA).
How to Select the Right References
Not all references provide useful insights. Focus on contacts who worked with the broker recently and were involved in similar types of sales.
Target 2–3 recent, similar-sale clients
Choose references from the past 12 to 18 months who sold businesses similar to yours. That includes comparable size, industry, and complexity. These references can verify how the broker performed, how much support they received from the firm, and how efficiently the process was managed. Cross-checking answers between multiple references helps avoid bias and gives you more reliable data to file in your review.
Include both smooth and challenging sale experiences
Ask for references from those who experienced both smooth and more complicated transactions. Feedback on difficult situations, such as buyer withdrawal, delays in document submission, or unexpected costs, can reveal how well the broker handles problems that affect employees, employers, and outcomes. You’ll also get a sense of the benefits and risks involved in each case.
Ensure references are informed and consented
Never contact a reference without the broker’s permission. Responsible firms should only share contacts who have agreed to speak and who understand the nature of the request. This protects privacy, aligns with federal data laws, and avoids violations related to personal background information. In sensitive industries like finance or healthcare, failing to follow proper procedure may also conflict with government standards or subject the broker’s organization to scrutiny. Always use a simple outreach form or email that confirms the reference is aware of the inquiry and comfortable participating.
How to Reach Out to Broker References
Keep your outreach respectful and efficient. Reference conversations don’t need to be long, but they should be focused on the broker’s actual performance, background, and job-related behavior.
Why email is more effective than calls
Email gives the reference time to think through their answers, check specific dates or documents, and provide more thoughtful, accurate feedback. It supports transparency and creates a written record that can be used for background verification or shared with other decision-makers involved in hiring.
This format also helps make key communication visible across your team. Unlike quick phone calls, email allows stakeholders to stay aligned by reviewing reference responses, timelines, and decisions in a shared format. This is especially valuable when you’re coordinating among employers, financial advisers, and legal supervisors across different roles or departments.
In modern organizations, visibility of content and communication networks enhances knowledge brokering by helping all members access the same information, regardless of their role or location. Email creates this shared visibility without relying on social platforms, enabling clear documentation, reduced duplication, and improved coordination between decision-makers.
The 3-bullet question approach
A short, focused email helps references respond quickly and avoids overwhelming them. Use three simple but strategic questions that center on the broker’s ability to manage employees, attract qualified candidates, and fulfill their position effectively. Here’s an example format:
- How well did the broker communicate throughout the sale?
- What kind of buyers or securities firms did they bring to the table?
- Would you hire them again or recommend them to others in a similar job or industry?
These sample questions help you obtain consistent answers that support your decision-making. They also make it easier to compare brokers based on how they interact with clients, perform under pressure, and represent your business during a critical employment transition. For firms in regulated industries, including those under federal securities laws, this added layer of feedback is essential. It helps uncover any risk of misconduct, missed deadlines, or even potential red flags like misrepresentation or past issues involving fraud or theft.
Sample outreach email template
Here’s a sample email you can copy, customize, and send:
Subject line: Quick reference check for [Broker Name]
Hi [Contact Name],
I’m currently evaluating [Broker Name] as I plan to sell my business and was told you worked with them recently. If you’re open to it, I’d appreciate your quick thoughts on your experience. You can reply to these short questions whenever convenient:
- How was the communication and follow-through?
- Were you satisfied with the buyers and marketing process?
- Would you work with them again?
Thanks for considering this. Even a few lines would be a big help.
Best,
[Your Name]
What to Listen for in Reference Feedback
You’re not just looking for praise; you’re looking for proof. Reference checks should confirm whether the broker performed their job as expected, delivered value to their clients, and followed through with professionalism.
Key evaluation points: responsiveness, marketing, follow-through
Listen closely to how the broker handled communication throughout the engagement. Did they respond promptly, explain their marketing plan clearly, and stay engaged until the closing date? A strong broker doesn’t leave clients or employers to handle the final steps alone. Ask if the broker kept the person updated, helped manage buyer communication, and provided verification materials when needed. These answers help you evaluate whether they met the minimum expectations for the position.
Common red flags: silence, generic materials, missed deadlines
If a reference says the broker was hard to reach, reused the same listing materials across different businesses, or didn’t meet agreed dates, treat it as a warning. These may be signs of a limited buyer network, a rushed process, or lack of care in how they sell securities. A negative reference doesn’t always mean rejection, but if the same concerns show up across multiple conversations, you’ll want to dig deeper or remove the broker from your list.
Patterns that boost confidence in your broker choice
Look for patterns that confirm the broker did more than just complete the sale. Multiple references mentioning strong communication, effective buyer screening, and steady updates suggest a broker who values process, protects your company’s reputation, and delivers consistent results. These brokers often work well with supervisors and firm members to keep things moving. When that kind of structured support is clear, you’re more likely to obtain a smooth and successful outcome. These signals may reduce the need for additional background verification later, depending on your internal standards.
How to Score and Compare Feedback
Once you’ve spoken with several references, organize what you’ve learned. Scattered comments won’t help unless you structure them. Use a scorecard to compare each broker based on the same set of factors.
Set up a simple scorecard
You don’t need complex tools. A basic spreadsheet or paper form will work. For each broker, create a log with the reference’s name, the date of the conversation, and notes on their answers. This helps you perform fair comparisons and track how each candidate fits your needs. It also makes it easier to show documentation to other decision-makers, HR members, or legal supervisors if needed.
Suggested columns: Responsiveness, Marketing, Recommendation
To organize your broker reference checks efficiently, create a simple form or spreadsheet using categories that reflect how most employers evaluate job candidates. These columns help you track key feedback, verify performance, and highlight any concerns related to employment history, communication, or deal execution. Here are the suggested columns to include:
- Responsiveness: Did the broker respond promptly, communicate clearly, and stay engaged throughout the process? This helps assess how they’ll work with you, your team members, and potential buyers.
- Marketing: Did the broker effectively promote the business, attract qualified candidates, and provide updates on buyer activity? Strong marketing can directly impact job outcomes, valuation, and deal speed.
- Recommendation: Would the reference work with this broker again? A strong recommendation adds credibility, especially if the reference held a similar position or was part of a regulated organization such as a securities firm.
- Notes: Use this section to record details about any concerns, positive feedback, missed dates, or benefits mentioned by the reference. Include items related to employment gaps, file handling, or missed verification steps that could influence your final decision.
How to interpret positive, mixed, and negative feedback
Once you’ve gathered scores and notes from your broker reference checks, use the feedback to identify patterns. Pay close attention to how the broker handled their job, supported employers, and managed important tasks like file organization, communication, and candidate interactions. Here’s how to interpret different types of feedback:
- Positive Feedback (Mostly 4s and 5s): Likely a strong candidate who performed well, met deadlines, communicated clearly, and delivered on key responsibilities. These brokers often handle employment files properly and provide verification documents without issues.
- Mixed Feedback (A range of high and low scores): May indicate uneven performance. You may need to conduct background checks, request more details, or ask follow-up questions to clarify gaps in employment, missed dates, or problems with job execution.
- Negative Feedback (Multiple low scores or serious concerns): Treat any mention of missing files, billing problems, or unresponsiveness as a warning. Always verify these claims with another person. Consistent issues across references can signal risk in how the broker handles documents, candidate communication, or obligations to employers.
Using this system helps you avoid hiring a broker with hidden problems and keeps your selection process focused on real, job-related performance.
Next Steps After Completing Reference Checks
After conducting reference checks, use your scorecard to separate strong brokers from risky ones. Move the top candidates forward and prepare for final interviews with clear questions in hand.
Move top brokers to the final interview round
If a broker received strong marks across multiple references, invite them to a final interview. Use that conversation to clarify anything the reference didn’t cover and discuss your specific business goals. This step helps you verify the broker’s position and their ability to support your company’s needs—not just what they did for someone else.
Remove or caution against brokers with weak feedback
If you receive repeated negative information, take action. Remove brokers with poor communication records, missing files, or unclear marketing plans. Others might stay on your list, but with caution. Add notes to flag what you’ll need to address during the interview, such as limited buyer reach, concerns about fee structure, or gaps in employment history.
Preparing for a data-driven final decision
Use all the information provided during reference checks to guide your next move. Compare your top candidates side by side using your scorecard. Consult the Broker Red Flag Detector or Pre-Screen Scorecard from your toolkit to create a final shortlist. This process can help you identify the best fit, align with internal review steps, and reduce the chance of costly surprises. A clear, organized evaluation reduces stress and positions you to hire with confidence.
Make Smarter Broker Choices With Structured Reference Checks
Broker reference checks can be a highly effective way to reduce risk, verify performance, and support a more informed sale process. Speaking with former clients, asking focused questions, and tracking their feedback gives you real insight into how brokers actually perform, not just how they present themselves.
This article walked you through a clear process to conduct background checks, evaluate brokers fairly, and base your final decision on facts, not assumptions. With this method in place, you’ll move into interviews and negotiations with more clarity, fewer concerns, and a stronger chance of hiring the right broker for your business.
Frequently Asked Questions
What questions should I ask when contacting a broker reference?
Ask about communication, marketing results, and whether the person would hire the broker again.
How many references are enough to vet a broker properly?
Two to three recent, relevant references are enough to verify performance and reduce hiring risk.
Can I ask for references from those who had problematic deals?
Yes, speaking with clients from challenging sales helps reveal how the broker handles issues and pressure.
What qualifies as a “red flag” in broker reference feedback?
Common red flags include slow responses, vague marketing plans, missed deadlines, and lack of follow-through.
Is it okay to skip reference checks if the broker seems experienced?
No, even experienced brokers should be vetted through reference checks to confirm fit and track record.
References
- Bräuchler, B., Knodel, K., & Röschenthaler, U. (2021). Brokerage from within: A conceptual framework. European Journal of Cultural and Political Sociology, 33(4). https://doi.org/10.1177/09213740211011202
- van Zoonen, W., & Sivunen, A. (2020). Knowledge brokering in an era of communication visibility. Management Communication Quarterly, 60(1). https://doi.org/10.1177/2329488420937348
