Business Broker

A business broker is a professional who facilitates the sale of small to mid-sized businesses, typically transactions valued below $5 million. Brokers represent sellers, buyers, or both, and provide services including business valuation, marketing, confidential buyer screening, offer negotiation, and transaction coordination through to closing.

In Canada, business brokers may hold membership in the Canadian Association of Business Brokers (CABB) or the International Business Brokers Association (IBBA). Unlike M&A advisors, brokers typically work on commission-only engagements (no upfront retainer), charge success fees of 8–12% for smaller transactions, and list businesses on public marketplaces such as BizBuySell.

A business broker whose transactions include real property must hold a real estate licence in the province where the property is located. For business-only sales with no real property component, provincial real estate council jurisdiction (RECO, BCFSA) does not apply — the broker's obligations derive from common-law agency principles and professional association codes of conduct.

See also: M&A Advisor, CABB, IBBA, Success Fee, Lehman Formula.