How to sell a small business: brokers, marketplaces, and private buyers
Exit planning · Deal structure · 9 min read ·
Once you've decided to sell, the next question is who finds the buyer. There are three main routes, and the right one depends on the size of your company, how much help you want, and how private you need the process to be.
Business brokers and M&A advisors
Brokers typically work with smaller main street companies. M&A advisors handle larger, more complex deals. Both value the business, prepare the materials, market it confidentially, screen buyers, and manage negotiation. They're paid mostly on success, usually as a percentage of the sale price. You get expertise and a buffer between you and buyers, at a real cost.
Online marketplaces
Marketplaces list businesses for buyers to browse directly. They work best for smaller companies with clean, simple financials, especially online businesses. Costs are lower and you keep more control, but you also carry more of the work and screening.
Private and strategic buyers
Sometimes the best buyer is already in your network: a competitor, a supplier, a customer, a private equity group, or a fund. A direct sale can be faster and more private. The risk is selling to the first interested party without testing the market.
How to decide
- Larger or more complex company: an M&A advisor usually pays for itself.
- Smaller, simpler company: a broker or a marketplace may fit.
- Known strategic buyer: still get an independent valuation before you talk numbers.
Watch the terms, not just the price
Headline price is only part of the deal. Cash at close, earnouts, seller financing, and how long you stay on all change what you actually take home. Read every term as carefully as the number.
