TrueValue M&A Network

Business brokers

Business brokers market owner-managed businesses for sale, qualify the buyers who respond and carry the sale from the first enquiry to completion. For buyers, they are the front door to most of the businesses advertised for sale in the UK.

Business brokers

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What business brokers do

A broker values the business with the owner, prepares a sales memorandum, advertises it — on the marketplaces, to their own buyer list and through their network — and handles enquiries. They qualify buyers, arrange meetings and viewings, gather offers and help the parties agree heads of terms, then chase the deal through due diligence and the legal process.

Good brokers add value on the buyer side too: they know which sellers are realistic, they can tell a buyer what the seller actually needs from a deal, and they keep a transaction moving when it stalls.

When to engage them

A seller should speak to a broker a year or more before they want to complete. A well-prepared sale — clean accounts, a management team that can run without the owner, a customer base that is not one contract — is one that took time to prepare.

A buyer does not engage a broker in the same way; the broker acts for the seller. A buyer’s relationship with brokers is about being known as a credible, funded and decisive buyer, so that the right opportunities arrive before they are advertised.

Usually active at

  • Exploring
  • Sourcing
  • Evaluating a specific business
  • Making or negotiating an offer
  • Selling a business

What they typically help with

  • Valuing and preparing an owner-managed business for sale
  • Marketing the business confidentially and on the marketplaces
  • Qualifying buyers and managing viewings and offers
  • Agreeing heads of terms between the parties
  • Keeping the deal moving through diligence and legals

Questions to ask before you engage

  1. 1. How many businesses like mine have you sold in the last twelve months, and what proportion of your listings complete?
  2. 2. Where will you advertise it, and how do you protect confidentiality from staff, customers and competitors?
  3. 3. What are your fees, what is the minimum, and is there an upfront or marketing charge?
  4. 4. How long is the sole agency period, and what happens if I find the buyer myself?
  5. 5. How do you qualify buyers before they see my information?

How business brokers are paid

Brokers are usually paid a success fee by the seller on completion, as a percentage of the sale price with a minimum. Some charge an upfront or marketing fee as well; be clear about what it buys and whether it is offset. Sole agency terms and tail periods vary widely and are worth negotiating before signing.

How TrueValue fits alongside

TrueValue reads the marketplaces brokers advertise on into one feed of market listings inside the deal workspace, scored against your acquisition mandate, so a buyer sees what is on the market without visiting fourteen sites. When a broker sends a memorandum, CIM analysis spreads and scores it in minutes, and Value My Deal gives an independent view of the price before the first conversation.

Frequently asked

Who pays the business broker?

The seller, almost always, on completion. A buyer does not usually pay a broker unless they have engaged one on a retained search, which is a different service.

Can a buyer trust the figures in a broker’s memorandum?

Treat them as the seller’s account of the business. Adjusted EBITDA in particular reflects add-backs the seller has argued for. Financial due diligence exists to test them, and TrueValue labels a management-stated figure as such wherever it appears.

What size of business do brokers handle?

Most brokers work with owner-managed businesses from a few hundred thousand pounds to the low tens of millions. Above that, a corporate finance adviser running a structured process is more usual.

Listings in the TrueValue M&A Network are provided for information. A listing is not an endorsement or a recommendation, and TrueValue does not guarantee any professional’s performance. You must carry out your own due diligence before engaging anyone, verify regulated status independently with the relevant regulator, and seek qualified legal, financial and tax advice where appropriate.