10 Questions To Ask A Business Broker Before Hiring Them
Hiring the wrong broker can cost you thousands—maybe even millions. A bad broker could undervalue your business, waste your time with unqualified buyers, or—worst case—fail to sell your business at all. But a great broker? They maximize your business’s value, find serious buyers, and guide you through a seamless, stress-free exit. So how do you tell the difference? By asking the right questions. Here are 10 questions to ask a business broker before hiring them.
10 Questions To Ask A Business Broker Before Hiring Them
Not all brokers are created equal. The best ones are experienced, ethical, and aligned with your financial goals. Before signing any contracts with a business broker, ask them these 10 critical questions:
How many businesses like mine have you sold in the last year?
Who’s been buying businesses like mine recently?
What was the main reason businesses like mine didn’t sell?
How do you determine the asking price for my business?
What is your success rate for closing deals?
Do you work on commission only, or do you charge upfront fees?
Can you provide references from past clients?
What marketing strategy will you use to sell my business?
How do you screen potential buyers to ensure they’re serious?
What qualifications or certifications do you have?
1. How many businesses like mine have you sold in the last year?
You don’t want to be someone’s “first attempt” at selling a business like yours.
An experienced broker should be able to name multiple deals they’ve closed in your industry within the past year. If they hesitate or dodge the question, it’s a red flag.
What to look for: A broker with proven success in selling businesses similar to yours, ideally within your industry.
2. Who’s been buying businesses like mine recently?
Brokers with real industry knowledge can name the typical buyers: private equity firms, competitors, international investors, or first-time entrepreneurs.
If they can’t describe the market or buyer landscape, they probably aren’t tapped into serious buyers.
What to look for: A broker who understands your industry’s buyer trends and deal structures.
3. What was the main reason businesses like mine didn’t sell?
A broker with experience will know why businesses fail to sell and they should be able to tell you how to avoid those pitfalls.
Maybe the asking price was too high, financials were messy, or the business was too dependent on the owner. You need to know what are red flags for buyers who acquire businesses like yours.
What to look for: A broker who is honest about challenges and proactive about solutions.
4. How do you determine the asking price for my business?
This is a make-or-break question.
A good broker will use multiple valuation methods (market comps, cash flow analysis, EBITDA multiples) and explain why your business is worth what they say.
If their only answer is “we’ll list it and see”—run. That’s not a strategy. That’s gambling.
What to look for: A broker who understands business valuation in your industry and can justify their pricing strategy.
5. What is your success rate for closing deals?
Many brokers take on every client they can—but not all of them actually close sales.
A good broker should have at least a 60-70% success rate for completed transactions. If they dodge this success rate question, it’s a red flag.
What to look for: A broker who closes most of the deals they take on and doesn’t just collect clients.
6. Do you work on commission only, or do you charge upfront fees?
Some brokers charge hefty upfront retainers before they even begin the work. Others only get paid when they successfully sell your business (commission-based).
The best brokers for your business are confident enough in their ability to sell that they don’t require upfront fees.
What to look for: A commission-only broker—or one with reasonable, transparent fees.
7. Can you provide references from past clients?
If they’re good at what they do, they’ll have happy past clients willing to vouch for them.
If they make excuses or can’t provide references, that’s a major warning sign.
What to look for: At least three references from owners who successfully sold their business with this broker, ideally businesses in your industry, geography and revenue bracket.
8. What marketing strategy will you use to sell my business?
Selling a business isn’t just about listing it. It’s about attracting serious buyers.
A good broker should have a clear marketing plan, including:
Targeting the right buyers
Confidential listings on multiple platforms
Leveraging industry networks and databases
Professionally crafted sales materials
If their strategy is just “we’ll list it and wait”, they aren’t proactive enough.
What to look for: A detailed, multi-channel marketing approach.
9. How do you screen potential buyers to ensure they’re serious?
Not all buyers are serious or qualified. Some are just browsing, some can’t afford your business, and some just want to spy on your financials.
A strong broker pre-qualifies buyers by:
Verifying financial capability
Ensuring industry experience or strategic fit
Requiring NDAs before sharing details
What to look for: A broker who filters out unqualified buyers so you don’t waste time.
10. What qualifications or certifications do you have?
Certifications aren’t everything, but they show professional credibility.
The best brokers are members of the International Business Brokers Association (IBBA) or hold a Certified Business Intermediary (CBI) designation.
What to look for: A broker with industry credentials and a reputable network.
How These 10 Questions Saved One Business Owner from a Bad Deal
Michael owned a successful digital marketing agency but had no idea how to sell it. His first broker seemed nice, but after six months, there were zero offers.
Frustrated, he fired the broker and used these 10 questions to screen other brokers.
His second broker:
Had sold 5+ similar businesses in the last year
Knew the buyers in his industry
Only worked on commission—so they were motivated to sell
Had a strong marketing plan to attract serious buyers
Within three months, Michael had multiple offers and sold his agency for 42% more than the first broker estimated.
Don’t Just Hire Any Broker, Hire the Right One
The right broker will maximize your exit. The wrong one will waste your time.
Before signing anything, use these 10 questions to ask a business broker. They could mean the difference between walking away with life-changing money, or leaving lots of cash on the table.
