Middle market business brokers occupy the space between a local listing firm and a bank running a formal auction. They approach buyers rather than waiting for them, but with less ceremony and lower minimum fees than a bank. For many privately held companies that is exactly the right instrument.
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What they do that a listing firm does not
Build a buyer list before marketing, approach strategic acquirers and funds by name, prepare an information document that survives an institutional reader, and hold several buyers to one timetable so offers can be compared. A listing firm's model is reach through advertising; this tier's model is reach through contact.
What they do less of than a bank
Less formality, fewer rounds, smaller teams and usually a smaller retainer. That suits a company where three or four credible buyers exist rather than fifteen, and where the cost of a full auction would exceed the extra competition it created.
What they charge
A declining success fee with a minimum, sometimes with a modest retainer. Published US commissions on this site run from 5% to 15% across firms that print anything, and this tier rarely publishes. Compare three written proposals on the minimum, the tail and the buyer approach plan.
Questions people ask about middle market business brokers
How do I know if I am middle market?
Less by revenue than by whether professional buyers would compete for you. If three or more funds or strategic acquirers would plausibly bid, this tier fits.
Do they charge a retainer?
Some do and some do not. Where they do, ask whether it is credited against the success fee at closing.
Is the process shorter than a bank's?
Usually, because there are fewer formal rounds. Diligence takes the same time regardless of who ran the marketing.