One of the first decisions a business owner faces when considering a sale is how to go to market. Should you hire a business broker to manage the process, or should you work directly with a buyer? Both paths can lead to a successful outcome, but they involve different trade-offs in terms of cost, speed, confidentiality, and control.

There is no universally right answer. The best approach depends on your priorities, the nature of your business, and where you are in the process. This guide walks through what each option looks like so you can make an informed decision.

What a Business Broker Does

A business broker acts as an intermediary between the seller and potential buyers. They handle much of the heavy lifting involved in bringing a business to market, including preparing marketing materials, identifying and screening prospective buyers, facilitating negotiations, and coordinating due diligence.

Brokers typically work on commission, earning a percentage of the final sale price. For businesses in the $2 million to $10 million revenue range, broker commissions generally fall between 8% and 12%, though fees can vary based on deal size and complexity. Some brokers also charge an upfront retainer or monthly fees in addition to the success fee.

A good broker brings experience, market knowledge, and a network of qualified buyers. They can help you prepare your financials, position your business attractively, and manage the emotional dynamics that inevitably arise during a sale. For owners who have never sold a business before, that guidance can be valuable.

When a Broker Makes Sense

  • You want a competitive process. Brokers can market your business to multiple buyers simultaneously, which can create competitive tension and potentially drive up the price.
  • You do not have time to manage the sale. Running a business and selling it at the same time is demanding. A broker handles the sale process so you can focus on operations.
  • You need help with valuation and positioning. If you are unsure what your business is worth or how to present it to buyers, a broker's expertise can fill that gap.
  • The deal is large or complex. For larger transactions or businesses with unusual structures, a broker with specialized experience can navigate complexities more effectively.

What a Direct Buyer Offers

A direct buyer is someone who approaches you about purchasing your business without a broker in the middle. This could be a competitor, a private equity firm, a holding company, or an individual investor. The relationship is between you and the buyer, with support from your own advisors such as an attorney and accountant.

Working directly with a buyer eliminates the broker commission entirely, which on a $5 million transaction could mean saving $400,000 to $600,000. That savings can go into your pocket, be used to structure a more favorable deal, or both.

Direct buyers also tend to move faster. Without the need to create marketing materials, run a formal auction, and manage multiple interested parties, the timeline from initial conversation to closing can be significantly shorter. For many sellers in the Seattle market, this streamlined process is a major advantage.

When a Direct Buyer Makes Sense

  • Confidentiality is a priority. When you list with a broker, your business is marketed to a wide audience, even if anonymously. Working directly with a single buyer minimizes the number of people who know your business is for sale, which protects relationships with employees, customers, and vendors.
  • You already know the buyer or have been approached. If a credible buyer has reached out to you, or if you have identified a buyer you trust, there may be no need to pay a broker to find what you already have.
  • Speed matters. Direct transactions typically close faster because there are fewer parties involved and less process to manage.
  • You want a single point of contact. Some owners prefer the simplicity of dealing with one buyer directly rather than managing a complex, multi-party process through an intermediary.

The Trade-Offs: A Practical Comparison

Here is how the two approaches compare across the factors that matter most to sellers.

  • Cost: Brokers charge commissions of 8-12% of the sale price. Direct buyers do not charge the seller any fees.
  • Confidentiality: Broker-led processes involve wider exposure, even with NDAs. Direct buyer conversations are inherently more private.
  • Timeline: Broker processes typically take 6 to 12 months or longer. Direct transactions can close in 2 to 4 months.
  • Competition: Brokers can create competitive tension among multiple buyers. Direct deals involve a single negotiation.
  • Seller involvement: Brokers manage much of the process. Direct deals require the seller to be more engaged, though a good buyer will guide you through each step.

How to Evaluate Either Option

Whether you choose a broker or a direct buyer, the evaluation process should be rigorous. Here are the questions to ask in either scenario.

If You Are Considering a Broker

  • What is their experience with businesses of your size and in your industry?
  • How many transactions have they completed in the past two years?
  • What is their fee structure, and are there any upfront costs?
  • How will they protect confidentiality during the marketing process?
  • Can they provide references from previous sellers?

If You Are Considering a Direct Buyer

  • Do they have a track record of completed acquisitions?
  • How do they fund their purchases? Do they have capital ready, or will they need to secure financing?
  • What is their plan for the business after the acquisition?
  • Are they willing to sign a non-disclosure agreement before receiving sensitive information?
  • Can they provide references from previous sellers they have worked with?

A Note on Combining Both Approaches

Some business owners explore a hybrid approach. They may have initial conversations with a direct buyer while simultaneously evaluating brokers. This can help establish a baseline understanding of your business's value and the market's interest before committing to a path. Just be transparent with everyone involved about your process.

Where Hawkfall Fits In

Hawkfall Holdings is a direct buyer. We acquire established businesses in Seattle, Washington, and the broader Pacific Northwest with the goal of owning and operating them for the long term. When you work with us, there are no broker commissions, no auction process, and no uncertainty about who the buyer is. You deal directly with the people who will own and operate your business going forward.

We respect that every owner's situation is different. Whether you ultimately choose to work with a broker or a direct buyer, the most important thing is that you make an informed decision. If you would like to explore what a direct conversation looks like, we welcome you to visit our Sell Your Business page or reach out to us directly. Every conversation is confidential, and there is never any obligation.