The short answer
You don't need a business broker to sell a business. A broker is worth the fee (often around 8–12% of the sale price on smaller deals) when you want a broad, competitive process and don't have time to run it yourself. Selling directly to a qualified buyer saves the fee, keeps the sale more confidential and is often faster, but you rely on your accountant and lawyer to judge value and terms.
What does a business broker do?
A business broker represents the seller. A broker typically helps you set an asking price, prepares a confidential information memorandum (CIM), markets the business anonymously through listing sites and their buyer network, screens buyers and collects NDAs, manages offers, and keeps the deal moving to closing.
For larger companies the same role is played by an M&A advisor or boutique investment bank, which runs a more structured process aimed at strategic and private equity buyers, often with set deadlines and several rounds of bids.
How much does a business broker charge in Ontario?
Fees vary by firm and deal size, so get them in writing. As a general guide:
| Route | Typical business size | Typical fees |
|---|---|---|
| Main Street business broker | Smaller owner-operated businesses | Success fee commonly around 8–12% of the sale price, often with a minimum. Some also charge upfront listing or valuation fees. |
| M&A advisor / boutique investment bank | Lower middle market and larger | Monthly or upfront retainer plus a success fee, usually a lower percentage that declines as deal size grows. |
| Direct to a buyer | Any | No broker fee. You pay your own accountant and lawyer, as in any sale. |
On a $3 million sale, a 10% fee is $300,000. That's money well spent if the broker produces a buyer who pays meaningfully more than you'd get otherwise. Weigh it either way.
When a broker or M&A advisor makes sense
- You want to test the market broadly and have several buyers compete.
- You don't have time to manage buyer conversations while running the business.
- You have no idea who the likely buyers are.
- The business is large or complex enough that a structured process with multiple bidders is likely to move the price.
When selling directly to a buyer makes sense
- Confidentiality matters. Broad marketing, even anonymous, raises the chance that employees, customers or competitors hear about the sale.
- You care who buys it. If your team and the way the business runs matter as much as price, choosing the buyer yourself gives you control.
- A qualified buyer already wants businesses like yours. If a buyer publishes criteria your business meets, a conversation costs nothing and tells you a lot.
- Speed. Skipping the marketing phase can take months off the process.
- Fees. Without a success fee, more of the price stays with you.
The trade-off: you lose the competitive tension a broker creates, and you need to do your own work on value and terms. A good transaction accountant and M&A lawyer are essential either way.
Questions to ask a buyer if you sell direct
- How will you finance the purchase, and can you show evidence of it?
- Who will run the business day to day after closing?
- What happens to my employees, my location and the company name?
- Which acquisitions have you closed, and can I speak with a seller you bought from?
- What would you need to see in diligence, and how long will it take?
- How much of the price would be paid at closing, and how is the rest secured?
How to choose a business broker in Toronto or the GTA
If you go the broker route, ask each candidate:
- How many businesses like mine, in my industry and size range, have you sold in the last two years?
- What exactly is the fee: success percentage, minimum, retainer and any upfront charges?
- How long is the engagement, and how long is the "tail" (the period after it ends during which you're owed a fee if I sell to someone you introduced)?
- How will you keep the sale confidential?
- How did you arrive at the asking price? Be wary of a broker who wins the listing with a number no buyer will pay.
- Can I speak with two or three sellers you've represented?
The middle path
Many owners have a confidential conversation with a direct buyer before deciding anything. It costs nothing, gives you a real read on how a buyer sees your business, and you can still hire a broker afterwards. If you've already signed with a broker, a buyer you meet directly should go through them.
How Altigo works with owners and brokers
Altigo Partners is a buyer, not a broker. We acquire established GTA manufacturing and service businesses with $500K+ in EBITDA and operate them ourselves. Owners can come to us directly, with no fee owed to us, and we work just as readily through an owner's broker or M&A advisor.
Own a GTA business with $500K+ in EBITDA? Find out how a buyer would see it, in one confidential conversation.
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