Why would i pay a broker to sell my business?
It’s a fair question, and one we are asked regularly, particularly when an unsolicited offer arrives from a well-known acquirer, or when there’s an apparent “easy option” to sell to another firm within your own network. On the surface, going direct can feel simpler and more cost-effective.
Is it the best route though?
Many business owners assume that by not using a broker they will:
- save money
- simplify the process
- achieve broadly the same outcome
In our experience, that is rarely the case.
A good broker should more than pay for themselves and offer a good deal of assistance throughout the whole process and beyond.
What should a Broker Actually Deliver?
Using a good broker should result in four key outcomes:
- A stronger financial deal
- A better cultural fit (95% of the deal)
- A smoother, less stressful process
- An experienced individual who ensures that the deal completes
And importantly, when handled properly, it can actually save you money overall.
A Real Example
We were recently involved in the sale of a business that had received a direct for their business but was not sure if it was a good deal – it seemed to be. By approaching the market on a discreet, “no names” basis, we were able to secure an offer 20% higher from a well-matched acquirer. This obviously, more than outweighed our fee. In addition, all our fees are on a paid when paid basis.
Acquirers know that Harrison Spence have the ability to get deals done in a professional manner.
What Should You Expect from a Broker?
Not all brokers are the same, so it’s important to understand what you are getting for your fee.
At Harrison Spence, our service includes amongst other things:
- Assess your objectives and help you determine the best route to market.
- Prepare your business for sale, including internal due diligence
- Identify and shortlist suitable acquirers, with a strong focus on cultural fit
- Engage discreetly with buyers to generate genuine interest
- Prepare and distribute detailed information packs
- Arrange and manage meetings, including chairing discussions at different stages
- Create competition to secure the best possible offer
- Act as a buffer during negotiations, handling sensitive or difficult conversations
- Support you post-completion, including ongoing guidance as and when needed
What Our Clients Say
We have lots of reviews on our website, here are just two extracts
“What truly set him apart was his ability to go far beyond simply facilitating a transaction. He provided clear, practical insight into taxation, market conditions, and what ‘good’ really looks like in a deal.”
“Beyond Alan’s strategic insight, he is remarkably responsive and hands-on when it comes to negotiating terms and finalising the price… offering practical, actionable recommendations rather than relying entirely on costly lawyers.”
If you are considering a sale, it’s worth taking a step back and understanding all of your options before committing to a direct deal.
With over 15 years’ experience in buying and selling IFA businesses, we would be delighted to hear from you to outline how we can assist you with your planning.
As always, all first meetings are at our cost and there is no charge for an initial discussion.