Using a Business Broker
Pros
- ✓Access to off-market deals not publicly listed
- ✓Pre-screened and financially vetted listings
- ✓Negotiation expertise and deal structuring
- ✓Handles confidentiality and NDA management
- ✓Guides you through due diligence process
- ✓Coordinates with lenders, lawyers, and CPAs
Cons
- ✗Commission (8-12%) is built into the price
- ✗Broker represents the seller, not you
- ✗May push deals that maximize their commission
- ✗Quality varies widely — no licensing required in most states
- ✗May limit your direct access to the seller
- ✗Timeline pressure to close (they get paid at closing)
Buying Direct
Pros
- ✓No broker commission — potentially lower price
- ✓Direct relationship with the seller
- ✓More flexibility in deal structure
- ✓Full control over the timeline
- ✓Can negotiate seller financing directly
- ✓Better understanding of seller motivation
Cons
- ✗Smaller deal pool — only publicly listed businesses
- ✗No professional vetting of financials
- ✗You handle all negotiation yourself
- ✗Higher risk of incomplete or misleading information
- ✗Must coordinate your own team (lawyer, CPA, lender)
- ✗Seller may be less sophisticated about deal process
The Decision Framework
Use a broker when: You are buying a business over $500K, you want access to off-market deals, you are a first-time buyer, or you need help navigating SBA financing and complex deal structures.
Buy direct when: You have acquisition experience, you have identified a specific business you want to buy, the deal is straightforward, or you have your own advisory team (lawyer, CPA) already in place.
The hybrid approach: Use a platform like Venture Atlas to find vetted opportunities with structured buyer data, then bring your own advisory team to the table. You get the deal flow of a marketplace with the control of a direct purchase.