When selling a business, many owners struggle with whether to hire a business broker or a business intermediary (also called a M&A advisor, investment banker, or deal facilitator). The short answer is: 

👉 There’s no one-size-fits-all “better” answer — the right choice depends on the size and complexity of your business and your goals. 

Here’s a clear breakdown to help you decide: 

 

🧠 What’s the difference? 

Business Broker	Business Intermediary / M&A Advisor
Typically handles small to mid-size businesses (often <$10M in value)	Handles mid-market to larger companies (commonly >$5M in value)
Helps prepare business for sale and find buyers	Provides full transaction advisory services
Manages listings, buyer vetting, negotiations	Often manages valuation, structuring, due diligence, financing
Usually charges commission only (e.g., 8–12% of sale price)	Sometimes charges retainer + success fee, lower percent on larger deals
Less formal process, fewer financial controls	More rigorous, finance-driven process

 

🧩 When a Business Broker Might Be Better 

Choose a broker if your business is: 

✅ Valued under ~$10 million 
✅ A main-street type business (services, retail, hospitality, small manufacturing) 
✅ You want a hands-off process — someone to list and market it 
✅ You’re comfortable with a broker commission structure 

Pros 

• Lower upfront costs 

• Brokers specialize in finding potential buyers 

• Faster, simpler sales for “turnkey” small businesses 

Cons 

• Might not maximize price if buyers are sophisticated 

• Limited financial packaging and deal structuring help 

 

🏢 When an Intermediary (M&A Advisor) Might Be Better 

Choose an intermediary if your business is: 

📌 Valued over ~$5–10 million 
📌 Complex (multiple divisions, recurring revenue, intellectual property) 
📌 You want strategic buyers (industry players, private equity) 
📌 You care about deal structure and tax planning 

Pros 

• Can find strategic or financial buyers 

• Helps with valuation, negotiation, due diligence 

• More likely to get a higher sale price 

• Can assist with deal structuring, earn-outs, financing 

Cons 

• Typically higher overall fees (but often lower % on large deals) 

• More intensive process 

 

💡 Key Factors to Consider 

🔹 1. Business Size 

• <$2–5M → Brokers are common and often more cost-effective 

• $5–10M → Intermediaries/M&A advisors bring more value 

🔹 2. Buyer Type 

• Look for individual buyers (brokers work well) 

• Targeting corporate or PE buyers (intermediaries are stronger) 

🔹 3. Confidentiality 

Intermediaries typically have systems to protect confidentiality better (virtual data rooms, NDA controls, controlled buyer vetting). 

🔹 4. Pricing and Fees 

Understand how each charges: 

• Brokers usually take a straight commission 

• Intermediaries often have retainer + success fee, and possibly milestones 

 

📌 Common Mistakes to Avoid 

❌ Selling too soon without proper financials and documentation 
❌ Working with someone without proven sales experience in your industry 
❌ Not vetting the buyer’s ability to actually pay 
❌ Ignoring tax implications of deal structure 

 

🧾 Bottom Line 

👉 Use a business broker if you have a smaller business and want a streamlined sales process. 
👉 Use a business intermediary / M&A advisor if your business has significant value, complexity, or you're seeking a strategic buyer.