8 minute read

How Do You Become a Business Broker?

There are over 33 million small businesses in the United States, employing more than 60 million Americans. These enterprises form the backbone of the economy, and when owners decide to exit and sell their business, business brokers play a vital role in ensuring successful transitions.

Business brokers are intermediaries who not only facilitate the sale but also advise owners on growing and preparing their businesses for ideal exits. They manage every aspect of the transaction while maintaining strict confidentiality – from initial valuation through marketing and final closing. They help owners stay focused on daily operations throughout the sales process while working to ensure both sellers and buyers achieve their goals. While many brokers represent sellers, buy-side brokers specialize in helping qualified buyers find and acquire businesses.

For those interested in entering business brokerage, understanding the path to becoming a business broker is essential.

What is the Difference Between a Business Broker and an M&A Advisor

Business brokers and M&A Advisors work toward the same goal—selling a business—but operate in distinct market segments with different approaches and fee structures.

Business brokers typically specialize in selling small, independently owned Main Street businesses valued under $5 million. Their clients are owner-operators selling to a range of qualified buyers, including individual entrepreneurs, family members taking over the business, and local competitors looking to expand. These transactions commonly involve local businesses like auto repair shops, salons, restaurants, retail stores, and service providers. Identifying the right buyer type early in the sales process helps ensure a smoother transaction.

M&A advisors on the other hand, handle larger, more complex transactions, typically with companies valued above $5 million. These deals often involve multiple locations and complex ownership structures, attracting strategic buyers, private equity firms, and industry consolidators looking to strengthen their market position.

Fee structures for business brokers and M&A advisors vary depending on sale circumstances. Business brokers earn a commission based on deal value, typically 10% to 15% of the sale price. The larger the deal size, the lower the commission percentage. Some business brokers require a deposit or retainer at the start of the process to cover expenses.

M&A advisors typically charge both success fees (2% -18% of deal value) and retainer fees ($15,000 - $30,000). These fees are negotiable, and retainers may apply toward the final success fee when the deal closes.

Business Broker Responsibilities

Business brokers serve as intermediaries throughout the business sale process, from initial preparation through final closing. Before listing the business for sale, they offer exit planning guidance, help organize financial documents, and conduct valuations based on market trends and comparable sales to determine an asking price. They create confidential marketing materials, including detailed Confidential Information Memorandums, and leverage their networks to connect with qualified buyers while maintaining confidentiality.

During the sale process, brokers manage all aspects of the transaction, including buyer due diligence, price negotiations, and deal structuring. They work with lenders on financing arrangements, coordinate with professional advisors—from appraisers to CPAs and attorneys—and ultimately facilitate a smooth ownership transition. This includes training periods and handover plans. Throughout the entire process, brokers allow business owners to maintain focus on daily operations while working toward a successful exit.

Paths to Business Brokerage

Business brokers come from diverse professional backgrounds; each bring valuable experience to the industry. Many come to the field after successfully running and exiting their own businesses, which helps them understand both seller and buyer perspectives.

Real estate professionals—both commercial and residential—often transition into business brokerage, applying their transaction and negotiation experience. Financial professionals, including CPAs and bankers, come to the field with strong analytical skills and the financial expertise essential for business valuation and deal structuring.

Attorneys leverage their negotiation skills and contract law knowledge, while industry specialists broker deals in their sectors of expertise. Recent graduates from business schools and MBA programs often start at established firms, learning the profession through mentorship. Sales professionals and management consultants also transition successfully into brokerage, bringing valuable skills in relationship building and deal execution.

This diversity of backgrounds enriches the profession, with each broker bringing unique perspectives and expertise to serve their clients effectively.

Qualities that Make a Good Business Broker

Successful business brokers possess a combination of skills and qualities that enable them to effectively serve their clients:

• Financial Acumen: Understanding financial statements, business valuation methods, and deal structures is fundamental to success.
• Negotiation Skills: The ability to facilitate productive negotiations while maintaining positive relationships between parties is key.
• Communication Abilities: Clear, professional communication with clients, potential buyers, and other professionals is essential throughout the sales process.
• Problem-Solving Skills: Creative thinking and the ability to overcome obstacles are vital in complex business transactions.
• Emotional Intelligence: Managing the human aspects of business sales requires empathy, patience, and strong interpersonal skills.

Steps to Becoming a Business Broker

Industry Certifications and Professional Development

Professional development and certifications play an important role in establishing credibility and expertise in the business brokerage field. Many brokers pursue the Certified Business Intermediary (CBI) designation from IBBA, which demonstrates mastery of fundamental brokerage skills. More experienced brokers often seek the Merger & Acquisition Master Intermediary (M&AMI) certification from M&A Source. These certifications, along with state-specific credentials and active participation in industry associations, help brokers build trust with potential clients and stay current with industry best practices.

For those considering a career in business brokerage, the field offers opportunities to combine business acumen with relationship-building skills while helping business owners achieve successful transactions. Whether working with owners planning their exit or buyers seeking their next venture, brokers play an important role in preserving business legacies and creating new opportunities. 

To learn more about how to sell a business, download our free Guide to Selling Your Small Business for an in-depth guide that will walk you, step-by-step, through the process of valuing and selling a business.

Or, browse our Business Broker Directory to network with brokers in your region about best practices on how to become a business broker. 

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