Business Broker, M&A Advisor, or Solo: Which Is Right for You?

For most trades business owners selling a business worth $500K or more, using a business broker produces better outcomes than going solo. Not because brokers are magic, but because selling a business is a full-time job for 9 to 12 months, and good brokers have buyer networks, deal experience, and negotiating discipline that owners don’t. Whether you need a broker or something more sophisticated depends on how big your business is and who the likely buyer is.

The three paths, plainly explained

Business brokers work on deals roughly $500K to $5M. They’re paid a commission only when a deal closes, typically 8 to 12% for deals under $1M, with minimums often around $15,000 to $25,000. Their buyer pool is mostly individuals: first-time buyers, SBA-financed buyers, and small operators looking to acquire. Good brokers find buyers through their own networks, targeted outreach, and listing sites like BizBuySell. They handle confidentiality, screen buyers, and manage the process so you can keep running your business.

The IBBA (International Business Brokers Association) issues the CBI designation (Certified Business Intermediary) to experienced brokers who meet ongoing education requirements. It’s worth asking whether a broker you’re interviewing holds it.

M&A advisors work on deals roughly $3M to $50M+. They charge a monthly retainer ($5,000 to $10,000 per month is typical) plus a success fee, often structured on the “Double Lehman” formula: about 9 to 10% on the first million, declining on larger amounts. They run a structured competitive process. First an anonymous one-pager (called a “teaser”) goes out to qualified buyers. Then a full information package (the CIM, 30 to 80 pages) is shared only after an NDA is signed. Then management presentations and simultaneous competing bids. Their buyer pool is private equity firms, strategic acquirers, and corporate buyers. A completely different type of buyer than a broker typically reaches.

Going solo means you handle the entire sale without an intermediary. An attorney is still required, always. So is a CPA. Going solo makes sense only in specific situations: a known buyer already exists (an employee, a family member, a competitor who has expressed genuine interest), the deal is simple and small, or you have prior transaction experience. Most owners who try it underestimate how long it takes and how much leverage they give up by approaching a single buyer with no competitive alternatives.

How deal size changes the answer

Situation	Best path
Business value under $500K, known buyer	Solo with attorney and CPA
Business value $500K to $2M, individual buyer likely	Business broker
Business value $2M to $5M, no clear buyer type	Business broker with PE/lower-middle-market experience
Business value $3M+, PE firms are likely buyers	Consider M&A advisor
Business value $5M+, strong recurring revenue, PE calling	M&A advisor: structured competitive process
Any size, unsolicited offer already on the table	Get representation before responding

The table looks straightforward, but the harder question is always buyer type. A business worth $3M sold to an SBA-financed individual and the same business sold to a PE platform are two different transactions. Different processes, different timelines, and often a significant difference in final price. Knowing who is likely to buy your business shapes every other decision.

What PE buyers are actually doing in the trades right now

Nearly 800 HVAC, plumbing, and electrical companies were acquired by PE firms since 2022, according to Marketplace.org (2024). Roofing PE platforms grew from 17 to 56 between early 2023 and late 2024 (The Deal Sheet, 2025). PE interest in plumbing and HVAC on the Axial deal platform increased 550% from 2020 to 2023 (Axial, 2024). If you own a trades business with $2M+ in profit and $5M+ in revenue, there’s a good chance you’ve already received calls or LinkedIn messages from PE platform scouts. If you haven’t yet, you likely will.

PE buyers look at profit, not revenue. Most platforms want $5M+ in revenue and at least $2M in profit, though they’ll look at deals slightly under those thresholds if the risk profile is attractive. The calculation isn’t “how much is this business worth.” It’s “how much risk am I taking, and what’s the probability this cash flow continues after the owner leaves?” Low risk, even at slightly lower profit, still attracts serious PE interest.

Not every PE call is a serious offer. Some platforms throw out large numbers to start a conversation, see where your head is, and use what they learn for competitive intelligence: your market, your customer mix, and who else to approach. The number they mention in the first call is rarely the number they mean.

The cost of skipping representation is documented and specific. One owner received a $10 million verbal offer, agreed in principle, and had no representation in place. By the time due diligence completed, the price had been re-traded to $8 million, per Boyd Wealth Management (2024). The initial offer created goodwill. The subsequent process created leverage for the buyer.

Why most owners get the broker question wrong

The question most owners ask is “should I use a broker?” The better question is “how do I find the right one?” Hiring someone to help you sell your business is like hiring someone for a complex plumbing job. You could try to do it yourself, and people do, but it takes longer, costs more in mistakes, and the end result may not hold. A good plumber has done this specific job a hundred times. That expertise has real value. The question isn’t whether to hire one. It’s hiring the right one.

The difference between a good broker and a mediocre one is significant. A mediocre broker lists your business on BizBuySell and waits. A good broker activates their network. They have relationships with buyers who aren’t browsing listing sites, with other brokers who represent qualified buyers, and with lenders who can finance the deal. That network is what creates multiple offers. Multiple offers are what create a good price.

Three questions that separate strong brokers from weak ones:

• “How many of your deals come from referrals?” A broker who gets most of their business from past clients and other advisors has built a real reputation. One who relies entirely on listing sites is running a passive process.
• “Do you work exclusively for sellers, or do you also represent buyers?” A sell-side specialist is focused entirely on your outcome. A broker who represents both sides has conflicting incentives.
• “Who else is on your team?” Strong brokers have teams: someone who runs the financial analysis, someone who handles buyer outreach, someone who manages due diligence. A solo broker doing everything is a capacity constraint worth understanding before you sign.

Red flags for trades business owners

The listing price that sounds too good. The most common way bad brokers win business is by quoting an inflated valuation. It’s called “buying the listing.” You hear a big number, sign an agreement, and six months later they’re talking you down while your listing has gone cold. Ask any broker you interview: “How did your last five closed deals compare to the original listing price?” A good broker will show you. A bad one will change the subject.

Pressure tactics. A broker who calls repeatedly, creates urgency, or implies other buyers are circling is a red flag. Good brokers explain their process and let their track record speak.

Long exclusive agreements with no performance clauses. Some brokers want 12-month exclusives with no milestones. Six months is reasonable. A right to exit the agreement if the broker isn’t producing qualified buyers is even better.

The broker doing everything alone. Not automatically disqualifying. But ask specifically who handles financial recast, buyer outreach, and deal documentation. If the answer is “me” for all three, that’s a capacity and expertise constraint worth knowing about.

When going solo actually makes sense

Going solo is defensible in one specific situation: you have a known, serious buyer who has already expressed clear interest. An employee, a family member, a neighboring competitor you’ve worked alongside for years. In that case, paying a broker 10% to find a buyer you already have doesn’t make sense.

But “solo” doesn’t mean without professionals. It means:

• A transaction attorney reviews every document, especially the LOI (Letter of Intent), before you sign anything. The LOI contains an exclusivity clause that locks you in with one buyer for 60 to 90 days. That leverage belongs to the buyer if you sign without legal review.
• A CPA handles the tax structure before the deal closes, not after.
• If the buyer is a PE firm or any other institutional buyer, solo isn’t the right choice regardless of how well you know them. They have legal teams. You need one too.

The most common solo failure: the owner mentions to a competitor that they’re thinking about stepping back, with no NDA in place. The competitor isn’t serious. But now they know the owner is looking to get out, and they use that to approach the owner’s best customers or recruit the top technician. The deal never happens. The damage does.

The fee math at $2 million

A concrete example. HVAC business selling for $2,000,000.

Path A: Business Broker (10% commission)

• Broker commission: $200,000
• Transaction attorney: $15,000 to $25,000
• CPA and tax planning: $5,000 to $10,000
• Total: approximately $220,000 to $235,000
• Typical buyer: SBA-financed individual. Timeline: 9 to 12 months.

Path B: M&A Advisor (Double Lehman + retainer)

• Monthly retainer: approximately $7,500 x 8 months = $60,000 (often credited against success fee)
• Success fee (Double Lehman on $2M): approximately $180,000 total
• Transaction attorney: $25,000 to $50,000
• CPA: $10,000 to $20,000
• Total: approximately $215,000 to $250,000
• Typical buyer: PE platform or strategic acquirer. May produce a higher gross price through a competitive process.

Path C: Solo/FSBO

• Transaction attorney: $15,000 to $35,000
• CPA: $5,000 to $25,000
• Total: $20,000 to $60,000
• Only viable with a known, pre-identified buyer. Against a sophisticated buyer, an unrepresented seller is at a structural disadvantage on price and deal terms.

The fee difference between a business broker and an M&A advisor at $2M is often less than $30,000 once all costs are totaled. The real question is which path produces a higher gross sale price, not which one has the lowest headline fee.

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Common questions owners ask

How do I know if my business is big enough for an M&A advisor instead of a broker?

The rough threshold is $3M to $5M in sale price, but deal size is only part of it. The more important question is who the likely buyers are. If your business earns $2M+ in profit and has strong recurring revenue, PE firms may be the highest-value buyers, and a broker without PE relationships may not reach them. If you've already received unsolicited interest from PE platforms, that's a strong signal that a structured competitive process could produce meaningfully more than a single-buyer broker transaction.

Can I negotiate the broker commission?

Sometimes, particularly on larger deals. The standard 10% commission is more flexible on deals above $1M to $2M, where absolute dollar amounts are higher. What matters more than the percentage is the structure: is the commission paid only on a closed deal, or does the broker charge an upfront retainer regardless of outcome? A broker who gets paid only when you close is aligned with your interests.

What happens if I sign an LOI with a buyer before I have a broker?

The LOI typically locks you into exclusivity with that one buyer for 60 to 90 days. During that window, you cannot talk to other buyers, which eliminates your negotiating leverage. The buyer's accountants then perform due diligence, and any issues they find become grounds to renegotiate the price down. Have an attorney review any LOI before you sign it. This is the single most important thing to get right in the whole process.

How long does it take to sell a trades business?

Per IBBA Market Pulse data, most owners should plan for 9 to 12 months for a deal under $2M, and 12 to 18 months for a $2M to $10M deal. BizBuySell's 2024 data shows median days on market of 168 days for small businesses, but that's from listing to closing, not from when the owner first started thinking about it. Add 2 to 3 months for preparation and you're at 8 to 10 months minimum. Due diligence alone in the $5M to $10M range averaged 5.5 months in Q1 2025, per IBBA.