Advisors

Updated April 17, 2026

Finding a business broker who knows the trades

A business broker manages the sale process: valuation, marketing, buyer screening, deal structure, closing. The right broker for a trades business has experience in your sector and works on a fee structure that aligns with the seller's outcome. This page is what to look for, not who to hire.

What this page is and is not

This page does not list specific brokers. The Trades Navigator does not characterize for-profit service providers as recommended, top-rated, or vetted. The site's role is to lay out the criteria so the owner can evaluate broker candidates the same way they would evaluate any other vendor.

If a broker network or trade association builds a vetted directory in the future, this page will surface that resource directly. Until then, the page is a checklist.

What a business broker does

A broker manages the sale process end to end. Typical scope: valuation or coordination with a valuation specialist, preparation of the marketing package (sometimes called a confidential information memorandum), advertising the business for sale, screening prospective buyers (financial qualification and intent verification), facilitating meetings, structuring offers, coordinating with the seller's attorney and CPA, and managing closing.

A broker is not a substitute for a transaction attorney or a CPA. The broker manages the process. The attorney drafts the legal documents. The CPA models the tax outcomes.

What to look for

Sector experience. A broker who has closed at least 5 to 10 trades-business sales in the last 3 years understands what makes these deals different. Trades businesses typically have: licensed personnel who must transfer, customer-relationship-driven goodwill, and equipment lists that need careful inventory. Brokers from outside the sector can miss these.

Realistic valuation. A broker who tells you what you want to hear about price is not helping. A defensible valuation typically falls inside a range supported by BizBuySell or IBBA reference data. If a broker's quote is meaningfully above that range with no clear justification (recurring revenue, unusual asset base), that is a flag.

Buyer-screening discipline. Ask how the broker qualifies buyers. Look for: proof of funds review, signed non-disclosure agreement before any confidential financials are shared, and a written process for what financial information is shared at each stage.

Fee structure. The most common structure is a percentage of sale price paid at close. For businesses under $1M, fees of around 10% are common. For larger businesses, fees typically scale down. Some brokers also charge a retainer at engagement; this varies.

References. A reputable broker should be willing to provide 3 to 5 references from sellers in similar industries from the last 24 months. Call them. Ask: was the timeline realistic, did the broker's price target match the actual close price, and how was the buyer-vetting process handled.

Credentials to look for

Certified Business Intermediary (CBI), issued by the IBBA. Requires coursework, ethics commitments, and a body of completed transactions.

Merger & Acquisition Master Intermediary (M&AMI), also IBBA. For brokers handling larger transactions.

Membership in the IBBA itself or in a state business broker association. Membership is not a guarantee of quality but does mean the broker has subscribed to a code of ethics and continuing education.

State licensing. Some states require brokers to hold a real estate license to broker business sales. The state real estate commission publishes the requirements.

Red flags

Upfront fees with no engagement contract or with vague deliverables.

Pressure to sign a long-term exclusive agreement before the broker has produced a written valuation or marketing plan.

Reluctance to share references or the details of recent comparable sales.

A valuation that is meaningfully out of line with BizBuySell or IBBA reference data with no documented rationale.

No formal buyer-screening process before sharing confidential financials.

Sources

Related