Transaction Intermediary / M&A Advisor
A professional who facilitates the sale of a business by acting as an intermediary between the seller and potential buyers. Includes business brokers, M&A advisors, and middle-market M&A firms.
Definition
The term “transaction intermediary” refers to any professional whose role is to facilitate the sale or acquisition of a business.
They act as a bridge between the seller and potential buyers, taking on valuation, confidential marketing, buyer outreach, negotiation, and coordination through to closing.
In French-language Quebec documentation, you’ll see intermédiaire en transactions used for the same concept.
In practice, the term covers several realities depending on transaction size. The business broker typically handles SME transactions (under $5 million). The M&A advisor covers the middle market ($5 million to $50 million).
Larger transactions involve M&A advisory firms. In Quebec, for SMEs, “business broker” is the most common term.
Why the transaction intermediary matters in a business sale
Selling a business without an intermediary is like navigating a complex process without a guide. The intermediary brings three main advantages: access to a network of qualified buyers, negotiation expertise, and confidentiality throughout the process.
Without those pieces, the owner risks underselling the business, losing time with unqualified buyers, or compromising confidentiality with employees and customers.
The intermediary also absorbs the substantial workload of a transaction. Preparing the confidential information memorandum, qualifying buyers, organizing visits, coordinating due diligence, negotiating terms — these tasks take dozens of hours a week over 6 to 12 months.
An owner who tries to do it alone puts both the transaction and day-to-day operations at risk.
In Quebec, transaction intermediaries for SMEs are generally compensated mainly through a success fee calculated as a percentage of the sale price.
That model aligns the intermediary’s interests with the seller’s: the higher the price obtained, the higher the compensation.
What every seller should know
- Choose an intermediary whose experience matches the size and sector of your transaction — a broker specialized in service SMEs isn’t necessarily the right fit for a $20 million manufacturing business.
- Check the number of transactions completed in the last 2 to 3 years and ask for references from past sellers.
- Understand the compensation structure before signing: monthly retainer, preparation fees, success percentage, and any minimum threshold that applies.
- A good intermediary will tell you if it isn’t the right time to sell — they’d rather delay the transaction and secure a better price than force a suboptimal sale.