Mistakes Business Owners Make When Choosing a Broker (and How to Avoid Them)

Did you know 76% of business owners regret selling within a year? Too often, the regret stems from the same mistakes business owners make when choosing a broker. Selling a business is a financially and emotionally complex process. It takes patience, people skills, and foresight to get it right. 

This article covers the top five missteps to avoid and shows you how to partner with the right broker.  Let’s dive in. 

1. Business Owners Focus on Low Fees 

It’s natural to compare fees first, but focusing only on cost can backfire. According to IBEX Middle Market Business Brokers, experienced advisors will explain their fees because they know they can secure a sale that outweighs costs. If your broker lacks reach or industry expertise, those savings can shrink your final sale price.

What to do:

• Compare net proceeds - after commissions, legal and accounting fees, transaction taxes, and debts - not just costs.

• Ask about performance-based compensation so your broker’s incentives align with your success.

• Review past results and valuation multiples to confirm they deliver strong deals.

The real value is in both the selling experience and the money you walk away with after closing.

2. Entrepreneurs Skip Thorough Research

Integrity and proof matter in high-stakes roles—and so do people skills. Just as you carefully review a candidate’s track record before welcoming them into your C-suite, you should apply the same diligence when selecting a broker.

What to do:

• Request case studies from businesses like yours to see how they have handled similar challenges.

• Ask how many deals they’ve closed recently to confirm they know today’s market.

• Ask about deals that didn’t close to see how they protect their clients when a sale falls through.
  
  

Your instincts built your business up to the point of sale; don’t abandon them now. If you don’t get along with the person behind the credentials, it’s a red flag. Choose brokers who share your values. If transparency, professionalism, and communication are what you built your business on, look for a firm known for excelling with those qualities. 

3. Defining a Communication Process Builds Confidence

Many sellers assume a broker will ‘keep them posted,’ but unclear communication often leads to confusion and delays.

What to do:

• Agree upfront on weekly calls, monthly reports, or milestone check-ins to stay informed. 

• Ask what tools they use to prevent details from slipping through the cracks.

• Clarify your daily contact — whether it's your broker, analyst, or manager — so you know exactly who to reach out to.

Clear communication is the backbone of a smooth process. A broker who sets expectations, answers questions directly, and makes the steps concrete introduces calm into what could easily become a chaotic process.

Equally important is how a broker handles confidentiality. Sharing details about the sale too soon can unsettle employees or raise questions with partners. A reliable broker will explain how they keep information secure — from NDAs to managing who sees sensitive documents. 

Knowing your conversations stay private not only safeguards your business but also builds trust with everyone involved in the transition.

4. Sellers Choose Someone Without Industry Knowledge

Without industry knowledge, even skilled brokers can misjudge valuation and struggle to find the right buyers.

What to do:

• Ask about past deals in your sector to make sure they understand your market.

• Ask their thoughts on industry trends and buyer priorities to judge their foresight.

• Research and confirm their network of industry buyers.
  
  

Great personal industry connections open better doors. The right broker’s network can make all the difference. Great business advisors bring sector expertise, strong networks, and discipline. 

They also recognize that buyers evaluate more than numbers. For instance, workplace culture is an increasingly attractive feature, and a skilled broker knows how to position it as a selling point.

5. Clients Don’t Align Goals and Selling Strategy

Some owners assume every broker shares their vision. Without clear goals and a strategy, deals drift toward terms that don’t reflect what you want.

What to do:

• Ask how they will position your business to confirm their approach supports your goals.

• Discuss what types of buyers they target so you know they’ll pursue the right match.

• Review their negotiation style to ensure it aligns with your priorities for value and legacy.
  
  

Shared goals and a clear plan are the non-negotiable basis for all successful deals. When your vision and your broker’s strategy move in the same direction, you create focus, reduce conflict, and set the stage for the strongest outcome. 

Why Your Broker Choice Shapes Your Legacy

Selling your business for most is a once-in-a-lifetime decision. We’ve covered five costly mistakes—from focusing on fees to ignoring strategy. The right broker helps you preserve value, find the best buyer, and ensure your vision carries forward so that you can walk away with the reward you deserve.