Yes, I'm a broker. Yes, I get paid when sellers use brokers. So when I tell you private sales sometimes win, you can trust the answer is genuine. Here's when each option actually makes sense.
When private sales win
- You already have a buyer in mind. Family member, employee, competitor, customer who's expressed interest. No marketing needed — broker doesn't add much.
- Very small businesses (under $200k). Commission of 10% on $150k is $15k — a meaningful chunk. If you're comfortable handling the deal, private sale can be cheaper.
- You have time and patience. Selling well privately takes 15–25 hours per week of your time during the active marketing phase. If you have it, you save the commission.
- You have prior deal experience. If you've sold a business before and know your way around contracts, due diligence, and tax structuring, you don't need the hand-holding.
When brokers win
- Confidentiality matters. Hard to maintain in a private sale. Brokers run blind listings + NDAs as standard.
- You don't have a buyer. Brokers have buyer databases. Finn Group has 35,000+ registered buyers and 1,600+ enquiries per month — most aren't reachable through private listings.
- You don't know what your business is worth. Without comparable sales data, sellers routinely under-price (leaving $50–200k on the table) or over-price (sitting on market for a year).
- You can't spare the time. Active private marketing eats 20+ hours/week. If you're still running the business, that's not feasible.
- Deal structure matters. Sale contract, working capital adjustment, restraints, vendor finance, employment contracts — getting these wrong can cost more than the commission.
Real cost comparison
Let's say your business is worth $700k. Three scenarios:
| Scenario | Sale price | Costs | Net to you |
|---|---|---|---|
| Private sale, well-priced | $700k | $3k legal + $1k advertising | $696k |
| Private sale, under-priced | $580k | $3k legal + $1k advertising | $576k |
| Broker sale, no upfront | $700k | 8% commission = $56k | $644k |
| Broker sale, well-priced upside | $770k | 8% commission = $61.6k | $708k |
The honest reality: a good broker often recovers their commission and then some through better pricing, better buyers, and better deal structure. A bad broker is just a tax. The choice is less "broker vs no broker" and more "right broker vs wrong broker."
Want an honest opinion?
I'll tell you straight whether you need a broker or not. If your situation is better suited to a private sale, I'll tell you that and point you to the resources you need.
Free 15-Minute Chat →How to do a private sale well (if you choose to)
- Get a paid valuation ($2,500–$5,000 from an accountant or independent valuer). Don't guess.
- Prepare an information memorandum — 15+ pages covering history, financials, operations, risks, opportunities. Buyers expect this.
- Use BusinessForSale.com.au + Seek Business + Commercial Real Estate. Listing fees ~$200–$1,500.
- Require NDAs before sharing any identifying information. Use a template from your lawyer.
- Engage a commercial lawyer. Don't use a general lawyer — get someone who does business sales regularly.
- Set a realistic timeline. Average private sale takes 9–14 months. Plan for it.
- Don't cut corners on due diligence. Your buyer's accountant will dig in. Be ready.
The "I'll try privately first, then use a broker" trap
Many sellers try this. It rarely works well for two reasons:
- Burned market. Once buyers have seen your business at $X and rejected it, they're harder to re-engage at the lower realistic price. The listing carries baggage.
- Lost time. 6+ months of private listing while the business may be slowly declining. By the time you list with a broker, the financials may have weakened.
If you're seriously considering private, do it properly from day one — paid valuation, proper IM, marketplaces, NDAs, lawyer. If you're going to half-do it, just engage a broker from the start.