Should I Hire A Broker?

Should I Hire a Broker or Sell Directly to a Buyer?

If you’re considering selling your business, one of the first decisions you’ll face is how to run the process: should you hire a broker to manage the sale, or handle it yourself by engaging directly with an interested buyer?

This choice shapes the entire transaction, from timeline to valuation to confidentiality. On one hand, brokers can bring professional polish, access to a wide buyer pool, and the ability to market your company broadly. On the other hand, a direct sale can offer greater speed, discretion, and cost savings–especially if you already know your likely buyer or have been approached directly. And while some sellers worry that going direct means sacrificing structure or professionalism, that’s not always the case. Many buyer-led processes, especially those led by experienced search fund entrepreneurs, are highly organized and thoughtfully executed, even without a broker involved. 

To help you decide, here’s a breakdown of the key tradeoffs we’ll cover: reach, cost, control, and complexity/timeline. 

Reach

Brokers offer broad exposure by tapping into expansive buyer networks ranging from private equity firms and search funds to family offices and strategic acquirers. This can be especially helpful if you’ve never tested the market or want greater competition to drive up valuation. 

That said, many owners already have a shortlist of potential buyers, even if they haven’t formally engaged them yet. In these cases, going direct allows for targeted outreach and tighter communication. A credible, values-aligned buyer, like HSC, may already be within one or two degrees of that network. While the owner might not personally know that acquirer, they often know someone in their investor group. 

Search funds in particular are backed by a close-knit group of 10-15+ investors, many of whom are former operators or industry veterans. These investors are deeply committed to helping the entrepreneur find and build a great business, and their networks often include founders, advisors, and executives across industries. That means direct conversations can begin with more shared context and alignment than sellers often expect. 

Cost

Brokers typically charge a success fee of 4 - 8% of the final sale price. For some owners, this is worthwhile if you’re looking to widen the buyer pool or outsource a complex sale process. But for others, especially those who already have a clear successor in mind or value confidentiality, the fee can feel like a steep toll on an otherwise straightforward transaction. 

By contrast, a direct sale avoids these fees entirely. Every dollar saved on advisory costs can go directly to you. This could mean more funding for your next venture or supporting your retirement plans or family. On a $20M company sale, this fee could be north of $750K.

And importantly, going direct doesn’t have to mean going it alone. Many credible buyers are equipped to handle the deal process end-to-end. From diligence and legal structuring to post-sale integration, they often bring in trusted advisors and fellow proven frameworks, creating a professional and smooth experience for sellers, even without a broker or banker involved.

Control and Confidentiality

With a brokered process, you relinquish some control over how and when your company’s materials are distributed. Teasers are sent to wide lists, and even though NDAs are required, this can increase the chance of leaks, rumors, or unqualified inbound inquiries.

In a direct sale, you control exactly who sees sensitive information and when. This is particularly important if you want to limit distractions for employees or protect customer relationships during the sale process.

Timeline and Complexity

A brokered process typically takes 8 - 12 months, and that’s if things run smoothly. The timeline often includes 2 - 4 months of prep (gathering financials, building the CIM, preparing a data room with company documents), 3 - 4 months of buyer outreach and negotiation, and 2 - 4 months to close after signing a Letter of Intent. 

Direct sales, by comparison, tend to move significantly faster. Since there’s typically no CIM, fewer buyer conversations, and greater alignment from the outset, deals often close in just 2-4 months. Sellers skip much of the marketing phase and move straight into diligence and negotiation with a motivated buyer. 

That speed doesn’t come at the expense of professionalism. Many search fund buyers, for example, come to the table with financing lined up and diligence partners already engaged. Their backers have vetted them, and they’ve often been trained on running a tight, founder-friendly deal process. Many are former operators or entrepreneurs themselves (like the HSC team), which helps streamline diligence and make conversations more grounded, especially compared to institutional financial buyers or advisors who may be more removed from day-to-day operations.

So, What Should You Do?

A direct sale is often a better choice when:

• You already know your likely buyer(s)

• You value confidentiality and speed

• You want more ownership over the process

• You want to avoid broker fees

Even if you don’t personally know the buyer today, a direct sale can still feel personal when you’re aligned with someone who shares your values and commitment to your team. Buyers like HSC respect the business and have a clear desire to build on its legacy. That cultural and operational alignment can make all the difference, turning what might seem like a transaction into a thoughtful succession. 

Hiring a broker might be right when:

• You’re not sure who the right buyer is

• You prefer more support throughout the sale process

• You want to engage with many different types of potential buyers

Key Takeaways

• Brokers bring reach, structure, and experience, but at a cost in both time, control, and success fees that can reduce your net proceeds. 

• Direct sales offer speed, discretion, and ownership over the process, particularly when you already have alignment with a credible buyer. 

• With the right buyer, strong valuations are still possible without a broad auction, as trust and shared vision can reduce risk and streamline the deal.