June 23, 2025
If you’re a mid-sized business owner exploring options to sell your company, chances are Google’s almighty algorithm will force-feed you search results leading to “business brokers”. But is a business broker really the right partner to help you navigate a complex, multi-million-dollar transaction? Spoiler alert: probably not!
That’s not to disparage business brokers—they play a critical role in smaller business transactions. But once you cross into the mid-market—typically $5 Million to $150 Million in enterprise value—you invariably need the expertise of an M&A advisor (more on the differences between business brokers and M&A advisors here).
Still unsure whether you need a business broker or M&A advisor to sell your business? Here are 6 questions every business owner should ask during the exploratory stage…
Many business brokers specialize in selling restaurants, retail shops, and local service businesses. If your company generates $5 Million-plus in annual revenue, you’re likely operating well outside their wheelhouse.
What To Look For: A proven track record in mid-sized M&A deals, not just small business listings.
Business brokers often rely on local listings and small-scale networks. M&A advisors, on the other hand, have connections to private equity firms, strategic acquirers, and international buyers.
Why It Matters: The right buyer could pay a premium—but only if your advisor knows how to find and engage them.
Brokers often rely on rule-of-thumb multiples that oversimplify value. That might work for a coffee shop—but not for a complex business with recurring revenue, intellectual property, or niche market dominance.
What You Need: A rigorous business valuation approach that factors in growth potential, market conditions, and buyer synergies.
Many business brokers take a list-it-and-leave-it approach: they post your business on a marketplace and wait for inquiries.
What You Need: Confidential outreach, buyer qualification, structured negotiations, and deal management from letter of intent to close. In other words, you need the turnkey sales service that seasoned M&A advisors provide.
Tax optimization, earnouts, rollover equity, working capital adjustments—these are tools of the trade in mid-market M&A. Most business brokers simply don’t have the experience or expertise to structure deals this way.
Why It Matters: Getting a great headline price is one thing; keeping more of it after taxes and terms is a level of deal structuring expertise that expert M&A advisors are equipped to offer.
Some business brokers outsource much of the work to junior associates or third parties. In contrast, a credible M&A firm will provide a dedicated team of analysts, dealmakers, and legal/tax experts every step of the way, from valuation to closing.
What To Ask: Will I have senior-level support throughout the entire process? If the answer is no, you may want to look for an expert who ensures high-level support throughout the sales process.
Choosing the right advisor to sell your business is one of the most important decisions you’ll ever make. While a business broker might be fine for selling a local retail shop, owners of mid-sized businesses with an annual turnover of $5 Million-plus typically need the strategic guidance, global reach, and deal expertise that only a professional M&A firm can provide.
So, before signing up with any business sales intermediary, be sure to ask the tough questions. Because your future—and the legacy of your business—deserve more than a one-size-fits-all approach.
Woodbridge offers businesses in the U.S. and Canada with an annual turnover of $5 Million a free business valuation. Book your obligation-free appointment with one of our M&A experts here.