What Does a Business Broker Do? (Daily Work, Responsibilities & How They Get Paid)

Short version: A business broker is the person who quietly takes an owner who wants out, gets that business priced in a way a real buyer will accept, manages confidentiality, qualifies buyers, negotiates terms, keeps both sides calm through due diligence, and drags the deal to the finish line — then collects a success fee at closing. You are not paid for effort. You are paid for completion.

1. What a Business Broker Really Does (Short Answer)

You run the exit process, end to end

A business broker advises an owner who wants to sell. You position the business for sale, protect confidentiality, approach qualified buyers, negotiate terms, and carry both sides through to a signed, funded closing. You are effectively the deal manager for small and mid-sized company exits.

Not just “find a buyer”

Owners think “I just need a buyer.” That is wrong. The deal usually dies from fear, ego, tax questions, price reality, or paperwork fatigue. Your work is to prevent that collapse. That is why fees can hit tens of thousands of pounds on relatively small transactions; you kept a fragile exit alive until money cleared.

2. How a Broker Finds a Sellable Business

You look for motivation, not perfection

Your first job is to identify an owner who is already emotionally done. Typical triggers:

• Retirement / age / health
• Divorce or family pressure
• “I cannot manage staff any more” fatigue
• Relocation to another country
• No succession plan for the next generation

Highly motivated sellers close. Unmotivated sellers waste your life.

You secure a signed engagement (mandate)

Before you do any serious work, you get the seller to sign an engagement letter giving you the right to market the business and collect a success fee at completion. This protects you. Without this, you can spend months working and get legally cut out at the last second.

3. Valuation and Packaging

Turning chaos into a believable asking price

Most small business owners have messy numbers and an ego number in their head (“My shop is worth £1M because I built it for 15 years”). Your job is to turn raw financials into a price story a real buyer can accept.

That means you look at cash flow, stability, owner dependence, repeatable revenue, margins, and realistic buyer risk. You do not sell fantasy multiples. You sell a believable valuation narrative.

Building the confidential brief

You prepare a short, structured summary for buyers. Think of it as a controlled profile, not a public advert. It normally includes:

• What the business does and why it’s attractive
• Basic financial performance (high-level, not raw books)
• Growth / upside story (without lying)
• Reason for sale
• Transition plan (how the new owner will take over)

This “packaging” makes the business legible to buyers fast, without dumping sensitive data everywhere.

4. Confidentiality and Control of Information

Why confidentiality is everything

If staff, suppliers, clients, or competitors learn “the business is for sale” too early, panic starts, revenue drops, and the deal value dies. The owner knows this. That’s why they do not want to blast it on social media. They want a quiet, controlled exit.

Your role: protect the asset while selling it

The broker controls who sees what, and when. Normal flow:

• Buyer signs a Non-Disclosure Agreement (NDA)
• Buyer receives a controlled summary, not full books
• Only serious buyers see deeper financials

This is high trust. You are selling a live asset, not a dead thing. You must not leak it.

5. Building and Qualifying Buyers

You do not “hope someone is interested”

Real brokers maintain or build a small pool of qualified buyers: people or firms with money, capability, and clear interest in a specific niche (clinics, logistics, eCommerce brand roll-ups, local services, etc.).

You screen buyers before they ever speak to the seller

Your job is to keep time-wasters out. You quietly ask: Do they have access to funds? Do they understand the sector? Are they likely to close, or are they just “shopping ideas”?

This protects the seller’s time and keeps weak buyers from shaking the seller’s confidence.

6. Negotiation and Deal Management

You keep both sides sane

Deals die because someone gets offended, scared, or greedy. Sellers think buyers are stealing their life’s work. Buyers think sellers are hiding problems. You sit in the middle and translate.

Bridging the gap

Your voice sounds like this: “Here’s why the price is fair relative to cash flow and risk. Here’s how we can structure transition so you don’t feel abandoned. Here’s how we protect you if revenue dips in month one.”

This is not aggression. It’s controlled de-escalation. You are the adult in the room.

7. Due Diligence and Paperwork Coordination

What due diligence looks like in smaller deals

In “main street” and lower mid-market deals (roughly £100k–£2M+ sale price), due diligence is often messy. It can include bank statements, tax returns, lease contracts, supplier terms, inventory levels, key staff agreements, licences, customer concentration, etc.

Your job is not to be their accountant or lawyer. Your job is to keep momentum and keep both sides answering questions instead of walking away.

Paperwork flow

You help coordinate NDAs, Letters of Intent / Heads of Terms, proof of funds, draft sale agreements, and handover plans. You do not fake legal advice. You keep the process moving towards signature.

8. Closing the Deal and Getting Paid

When money actually moves

Once both sides sign the purchase agreement and funds are transferred (or escrow is released), the business changes hands. This is “closing”. Your success fee is normally triggered at closing.

Who pays the broker

In many cases, the seller pays the broker out of proceeds. Sometimes the buyer pays for buy-side work. The key point: you do not invoice hourly. You get a completion fee for delivering a closed transaction. For typical fee maths, read How Much Do Business Brokers Make?

9. After the Sale: Handover and Transition

Protecting the deal after signature

In many smaller business sales, part of the agreement is: the previous owner trains the new owner for a short transition period. You help set expectations here before closing, so nobody panics after closing.

This matters because buyers fear “I’ll buy it and it will collapse on Day 1.” Sellers fear “They’ll ruin my staff and my name.” You frame the handover so both sides feel safe to sign.

10. Why Owners Hire a Broker Instead of Selling Alone

Confidentiality

Most owners cannot quietly shop their own business without alerting staff, landlords, competitors, and clients. You provide controlled access to buyers under NDA.

Time and energy

Running a company while trying to sell it at the same time is overwhelming. Exit is emotionally heavy. Owners burn out fast. You carry that weight so the owner can keep the business stable until closing (which protects valuation).

Buyer reach

You often already know 3–5 credible buyers. The owner usually knows zero. That alone is worth a fee if it gets them a clean exit without drama.

11. Skills You Actually Need to Be a Business Broker

Calm under pressure

You are the stabiliser when emotions spike. You keep the seller from blowing up at the buyer. You keep the buyer from walking over fear.

Comfort with money talk

You must speak about price, cash flow, and terms without flinching. If you get shy around numbers, you will struggle. You do not need advanced corporate finance. You need honest, direct financial conversation.

Structured thinking

You turn chaos (messy books, ego pricing, emotional sellers) into something a buyer can say “yes” to. You are paid to create clarity.

12. What a Real Business Broker Does NOT Do

You are not a “finder’s fee” hustler

You do not just “introduce people and hope for 5%.” Without control of the mandate and the process, you are replaceable and you usually get cut out before money moves. Real brokers own the engagement and run the process.

You are not a miracle worker for dead businesses

If the business is already collapsing, staff are quitting, and cash flow is broken, the only potential buyer is a vulture. That is a nightmare first deal. Smart brokers walk away early instead of wasting months for £0.

You are not selling lies

Overpromising value kills trust in due diligence and the deal dies. Dead deal = no commission. You learn very fast to tell the truth in a way that still gets a “yes”. This is professional, not hype.