The commission on a business sale is a large number, and it is worth knowing precisely what it buys. Four things: reach to buyers you cannot find, screening of the ones who arrive, negotiation you do not have to do personally, and project management of a diligence process that otherwise drifts.
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Reach and screening
A firm's buyer list and its listing distribution reach people who would never find you, and its screening keeps your accounts away from the merely curious. Both are measurable: ask how many buyers they will reach, and how they filter. A firm that cannot describe its screening process is not doing one.
Negotiation and process management
Having someone else say no is worth real money, because a seller who must also keep the buyer friendly negotiates badly. Keeping diligence to a timetable is the other half, and it is where deals are saved. Ask what they do when a buyer goes quiet for two weeks, because that happens in most sales.
What you could do yourself
Listing on a marketplace, answering enquiries and assembling the file are all within reach of a determined owner. What is harder alone is reaching institutional buyers and negotiating against someone who does this for a living. Price the commission against those two rather than against the whole job.
Questions people ask about broker for selling business
When is a broker not worth it?
When you already know your buyer, or when the minimum fee is a large share of a small price. In both cases a lawyer and an accountant do the parts that matter for far less.
What should I ask before signing?
Closed sales in your trade, who runs the file, buyer numbers, the minimum fee and the tail terms, all in writing.
How long is a listing agreement?
Six to twelve months is common. Shorter is better if the firm is untested, provided the tail is limited to buyers actually introduced.