Business broker
An intermediary who markets a business for sale to a pool of prospective buyers, usually for a success fee.
Also called: M&A intermediary · Investment banker (lower mid-market)
A broker runs a sale process: preparing materials, listing or circulating the opportunity, screening enquiries, coordinating diligence, and negotiating. Compensation is typically a success fee as a percentage of the transaction, sometimes with a retainer or a monthly work fee, and engagement agreements usually include an exclusive period and a tail that survives termination.
The mechanism has a structural cost beyond the fee: most brokered processes work by breadth. The business is marketed to a wide pool, which increases the number of parties who learn a company is for sale, and in a small market that information travels to staff, customers, and competitors. For some sellers that is an acceptable trade for competitive tension. For others it is the reason they never start.
Serava is built for the second case, which is why the site says no broker and no public listing: introductions are made privately to buyers with a stated mandate rather than to a market. That is a different trade-off with its own limits — a narrower process reaches fewer buyers by design — and the right choice depends on whether confidentiality or breadth matters more for your business.
Where sellers get caught
- Signing a long exclusive engagement with a broad tail without reading either.
- Not asking how many transactions the broker has actually closed in your sector and size band.
- Assuming a listing equals a process. Marketing generates enquiries; qualifying them is the work.
Common questions
Can I sell a business without a broker?
Yes. Many owner-operator transactions happen through direct buyer contact, industry relationships, or a private introduction process. You still need a transaction lawyer and an accountant; those are not the roles a broker fills.
What is a tail period?
A clause that entitles the broker to a fee if you sell to a buyer they introduced, for a period after the engagement ends. Tails of twelve to twenty-four months are common and the list of covered buyers should be specific.
Related terms
Confidential information memorandum
The detailed document describing a business for sale, sent to qualified buyers after they sign an NDA.
Exclusivity
A binding commitment in the LOI that the seller will not negotiate with other buyers for a defined period.
Non-disclosure agreement
The agreement a prospective buyer signs before receiving confidential information about a business for sale.
Strategic buyer
An operating company that acquires a business for the strategic value it adds to their own — customers, capacity, geography, or capability.
Guides that use this term
Where business broker comes up in a real sale, and what it changes.
Last reviewed 2026-08-25. General information for business owners, not legal, tax, or financial advice — terms, thresholds, and tax treatment vary by jurisdiction and by deal.