How to choose a business broker

A good broker has no problem answering your questions. About their results, their fees, their process, and their references.

It’s when the answers get vague that you should be worried.

Why choosing the right broker matters

A business broker isn’t an interchangeable commodity — especially for a Quebec SME with $3 million or more in revenue, where fees run into hundreds of thousands of dollars and where a bad choice can wipe out the value a good one would have created.

The broker you choose directly shapes three things: the price you get, the time the process takes, and the outcome of the transaction.

A good choice means a structured process, qualified buyers at the table, and a defensible price. A bad choice means wasted time, compromised confidentiality, and missed opportunities.

Before even comparing candidates, the deeper question — working alone or with a broker to sell your business — needs to be settled. If the answer is “with a broker,” the selection that follows becomes an exercise in rigour.

This professional will manage one of the most important projects of your financial life. You’ll work together for 6 to 12 months, share sensitive information, and get through moments of tension.

The choice deserves as much rigour as choosing your CPA or your lawyer.

The six selection criteria

1. Closed transactions — not just listed ones

Listing a business for sale isn’t the same thing as seeing the file through to closing. The process between going to market and the final signature is long, complex, and full of break points.

Ask for the actual number of transactions closed over the last three years. That’s the only number that counts.

A broker who closes consistently has a process that works. A broker who takes on many engagements but closes few has a problem somewhere.

2. An understanding of your business reality

A good broker demonstrates that they understand your size, your ownership issues, your market dynamics, and the typical buyers — including the industry valuation multiples that actually apply to your sector.

Exclusive industry specialization isn’t the decisive criterion. It’s mastery of the transaction process that sets a good broker apart, applied with intelligence to your context.

Ask a simple question: “Who are the typical buyers for a business like mine?” If the answer is vague, that’s a signal.

3. Fee transparency

The compensation model has to be clear from the start. No grey areas, no fees that show up along the way.

Success-based fees, retainer, hybrid — the model matters less than the transparency. The ranges and the ROI calculation on business broker fees give you a sense of the Quebec SME market before any specific negotiation.

Ask for the full breakdown: success fees, marketing costs, file fees, tail clause. Everything has to be on the table before signing the engagement letter.

4. A documented process

A good broker doesn’t improvise. They have a structured, repeatable process — from the initial valuation to closing.

Ask to see the steps: how the business is valued, how the file is prepared, how buyers are identified and qualified, how the negotiation is managed, how diligence is coordinated.

If the broker can’t describe their process clearly, they probably don’t have one.

5. Verifiable references

A serious broker can give you the names of two to three sellers they’ve worked with — people you can call directly.

Call them. Ask how the process went, whether the broker delivered on their commitments, and whether they’d make the same choice again.

Evasive or nonexistent references are a red flag.

6. Personal chemistry

This is the most subjective criterion — but it counts.

You’ll work with this person for months, share confidential information, and make important decisions together.

At the first meeting, watch: is the broker listening, or selling? Are they asking questions about your business, your goals, and your timeline — or mostly talking about themselves?

A good broker seeks to understand before proposing.

The questions to ask at the first meeting

Bring this list to your first meeting with a prospective broker:

1. How many transactions have you closed in the last three years? — Not listed. Closed.

2. What’s your complete compensation model? — Success fees, marketing costs, file fees, tail clause — all of it, in writing.

3. Can you walk me through your process step by step? — From the initial valuation to closing.

4. How do you handle confidentiality? — How buyers are screened before they get access to sensitive information.

5. How will you keep me informed during the process? — Reporting frequency, type of communication, level of detail.

6. What happens if a buyer walks away mid-diligence? — Or if no qualified buyer comes forward.

7. Can you give me two to three references from sellers you’ve worked with? — People I can call.

A solid broker answers all of these questions without hesitation and without detours.

The red flags

Certain practices should set off an immediate alarm.

A “guaranteed” sale price. No one can guarantee a price before testing the market. A broker who promises a specific number before doing the valuation is trying to win your engagement — not inform you.

No references from past sellers. If a broker can’t name a single satisfied seller, the question has to be asked.

Vague fees, or costs that appear after the signature. Everything has to be clear before you sign. Fees that surface along the way are a transparency problem — and a signal about how the rest of the engagement will be handled.

Pressure to sign quickly. A good broker gives you time to think, ask your questions, and check their references. Pressure is a signal that something’s off.

A buyer who’s “already ready” — without having seen your numbers. If a broker tells you they already have a buyer before analyzing your business, that’s a sales pitch, not a reality.