One of the most common questions we hear is: “Are you a broker?” The short answer: no. The long answer highlights some important distinctions every business owner should understand before exploring a sale.
What a Finder Does
A finder connects buyers and sellers of companies—but unlike a broker, a finder is only compensated by the buyer when a deal closes. That means:
- No monthly retainer.
- No closing fee paid by the seller.
- No hidden obligations.
For the seller, this creates financial and personal flexibility. You can engage in discussions with buyers without feeling locked into fees or pressured to transact. And because the buyer compensates the finder, there’s no conflict of interest—the relationship between seller and buyer remains direct.
How a Broker Operates
A business broker, on the other hand, represents the seller. Their compensation typically includes:
- A monthly retainer fee.
- A success fee (usually 3–6% of the transaction value).
In a mid-market M&A deal, that can mean hundreds of thousands—or even millions—of dollars in fees. These fees exist for a reason: brokers provide hands-on support by marketing the business, sourcing buyers, and negotiating terms on behalf of the seller. It’s a full-service approach, but it comes at a significant cost.
The Key Trade-Off
- With a broker, sellers pay for guidance and advocacy throughout the process.
- With a finder, sellers retain more control—managing negotiations directly and deciding how much information to share—without the financial burden of broker fees.
Both models serve a purpose. The right choice depends on whether a seller values cost savings and flexibility (finder), or prefers structured, high-touch support (broker).
