Should I Use a Business Broker to Sell My Business?
Should I Use a Business Broker to Sell My Business?
Most entrepreneurs have the majority of their net worth tied to their company—so when it’s time to sell, it’s not just a transaction. It’s likely the most financially significant moment of their life.
Which leads to a fair question:
Why pay a business broker or M&A advisor hundreds of thousands of dollars to help sell your business?
After all, if you’re a sharp entrepreneur with strong negotiation skills, couldn’t you manage the process yourself and keep that fee?
You could. But studies show that business owners who go it alone walk away with up to 25% less value.
As a founder-led M&A firm, we understand the skepticism—we’ve built and sold companies too. But we also know what’s at stake, and we’ve seen firsthand how the right advisor transforms outcomes.
In this article, we’ll cover:
How professional M&A advisors generate significantly more value
Why having buyers already doesn’t eliminate the need for a structured process
The most common mistakes founders make when selling solo
And why Breakwater’s founder-first approach consistently unlocks life-changing exits
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How M&A Advisors Can Increase Your Sale Value by 25% or More
Many business owners approach selling their business like selling a house—focusing solely on finding a buyer. This is the wrong mindset. The key is finding the right buyer, not just any buyer.
Research shows that owners who sell their businesses without professional help receive up to 25% less value.
This becomes even more important for business with $2M–$20M in annual revenues, it's an entirely different game—with higher stakes and hidden complexity.
Here's what professional M&A advisors actually do to increase value:
1. Create Competitive Tension
Working with a single buyer leaves you with zero negotiating leverage.
Businesses commanding the highest sale prices typically have multiple buyers bidding at the same time. At Breakwater, our proprietary process is built to create exactly that.
2. Widen Your Buyer Network To Maximize Value
Strategic buyers (buyers within your industry) are only one piece of the puzzle. To maximize value, we bring in financial buyers, family offices, and private equity (PE) firms you might not know about.
This creates a diverse pool of qualified buyers, giving us powerful negotiating leverage through a managed process (more on this below).
If you're selling a business with $5M in revenue, for example, having different types of buyers can unlock 6- to 7-figures of value.
3. Craft the Right Narrative
Buyers don't just purchase your profit and loss statement. They buy your company's story—your potential for future growth, your competitive advantages, and how well you're positioned against competitors.
After selling hundreds of businesses, we know exactly what buyers look for and how to showcase your business effectively.
4. Anticipate and Neutralize Deal Killers
From tax issues to customer concentration, small missteps can kill a deal or reduce price during diligence. Our end-to-end process is designed to identify and solve these problems long before they hit the buyer's radar.
What If I Already Have Buyers Approaching Me?
It's common to get inbound interest—especially if your business is profitable, growing, or well-known in your niche. For certain industries, like plumbing businesses, your inbox is likely overflowing with emails from potential buyers.
But here’s the thing: if one buyer is interested, others probably are too. The worst mistake a founder can make is assuming that a single offer reflects true market value.
Buyers who approach you directly often want to avoid competition and dictate terms. Without an advisor, you’re negotiating blind, without the benefit of a full process or true valuation benchmark.
We’ve had multiple clients come to us with an offer in hand—only to walk away from our process with double the initial valuation after running a proper buyer outreach strategy.
The Biggest Mistakes Entrepreneurs Make Selling Without Help
Even highly capable founders often make these five costly mistakes when attempting to sell their businesses solo:
1. Underestimating the True Value
Most owners don’t know how to properly adjust EBITDA, benchmark multiples, or position for strategic upside. The result? Leaving serious money on the table.
2. Getting Emotionally Involved
It’s your baby—we get it. But emotion clouds judgment, especially when negotiations get tough or buyers ask hard questions.
3. Obsessing Over Price Instead of Terms
A $10 million deal isn't truly worth $10 million if half the money is locked in earn-outs, escrows, or post-close liabilities. We help founders structure the deal to protect their downside while maximizing their upside.
4. Destroying Their Current Business with Deal Distractions
Even with an advisor handling most of the heavy lifting, selling a business requires significant time and attention. Trying to manage the entire process solo can completely consume you—from endless buyer meetings to constant due diligence requests. This distraction often causes business performance to suffer at the worst possible time, potentially tanking the deal in its final stages.
5. Working With The Wrong Buyers
Not all buyers are closers. Some overpromise and underdeliver. Others don’t share your values or vision for the team. Using a trusted advisor can help vet every buyer for fit, intent, and credibility.
Our Proven Process: The Breakwater Blueprint
At Breakwater, we built our firm for one reason:
To help fellow entrepreneurs achieve life-changing exits.
Our founder-led team knows the grind of building a company—and the high-stakes pressure of letting go. That’s why we developed a proprietary, repeatable system called the Breakwater Blueprint.
This 100+ step playbook is designed to maximize sale value and minimize stress.
Here’s how it works:
1. Preparation Phase
We pressure-test your business like a buyer would—scrutinizing your financials, growth narrative, legal structure, and risks. We then address potential deal-breakers, even putting in extra work before you sign an engagement agreement with us.
2. Buyer Research
We don't just know who might buy your business—we leverage sophisticated M&A databases and industry networks to build a comprehensive map of the buyer landscape.
Through proprietary deal intelligence platforms and our extensive network, we identify and rank active buyers, their acquisition criteria, and their track record of closing deals in your space.
This data-driven approach ensures we target buyers who are not only serious but also culturally aligned with your values.
3. Go-to-Market Strategy
From data room creation to buyer outreach positioning, we package your company for premium perception—and manage the entire outreach process with the utmost confidentiality (learn more about our confidential approach on a call with our team here).
4. Process Management
We handle all the fires that inevitably arise during a deal. This includes managing the day-to-day work: buyer calls, data room organization, coordinating with lawyers, bankers, and accountants, and responding to due diligence requests—allowing you to focus on running your business without burning out.
Perhaps our most valuable role? We're your trusted confidant, offering both emotional support and strategic guidance to ensure you secure the best possible deal.
5. Negotiation & Closing
Because we’ve built leverage and optionality into the process, we negotiate from a position of strength—right up until the wire transfer clears.
Ready for Your Exit?
If your business is generating between $2M–$20M in revenue and $350K+ in EBITDA, you’re in the prime window for a high-value exit.
Let’s make sure you get the deal you deserve—not the one a buyer convinces you to take.
👉 Speak with Breakwater M&A for a confidential consultation today.
FAQs About Selling With Breakwater
How Do M&A Fees Work?
At Breakwater M&A, success fees typically range from 3% to 10%, depending on the size of your business—the larger the business, the lower the percentage. We also charge a modest upfront or monthly fee, which is credited against the success fee when the deal closes. This upfront investment ensures mutual commitment, as we dedicate hundreds of hours to each engagement.
How Is a Business Valued?
Business valuations are typically based on a multiple of the company’s profit. However, calculating that profit goes beyond simple taxable income. We use financial adjustments and industry benchmarks to ensure you understand your true valuation—even if you're not ready to sell today.
What Is EBITDA and Why Is It Important?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a standard metric used to measure a business’s profitability and forms the foundation of most M&A valuations. Accurate EBITDA calculation is crucial when planning an exit or attracting buyers.
What Is the Typical Timeline to Sell a Business?
The process of selling a business generally takes 6 to 8 months, though more complex deals can stretch beyond 12 months. Timing can vary based on industry, deal size, buyer pool, and how prepared your business is at the outset.
Why Should I Hire an M&A Advisor Instead of Selling on My Own?
While it’s possible to sell your business independently, M&A advisors bring structure, buyer access, negotiation leverage, and experience that often results in higher valuations and smoother deals. Even if buyers are approaching you directly, professional representation ensures you don’t leave value on the table.
How Do I Prepare My Business for Sale?
Strong preparation is the foundation of a successful exit. This includes having clean financials, updated contracts, and reducing any operational dependency on the owner. A well-prepared business is not only more attractive to buyers but also commands higher value.
What Industries Does Breakwater M&A Specialize In?
While industry-agnostic, we specialize in helping service-based and software businesses with $1M–$20M in revenue and strong profitability. These are typically founder-led businesses with clean operations and growth potential.
Can You Provide Detailed Case Studies of Similar Businesses?
Yes, we have a library of both public and private case studies. These highlight real-world examples of how we’ve helped businesses navigate successful exits. We’re happy to share examples tailored to your industry or deal size.
What Is Your Experience and Professional Background in M&A?
Since 2019, Breakwater has closed over 50 transactions representing more than $150 million in total deal value. Our team brings a mix of entrepreneurial and investment banking experience, giving us insight from both sides of the table.
How Do You Determine Business Valuation?
Valuation is primarily based on cash flow and profitability, with industry trends and business model playing important roles. Every business is different, and our team customizes valuation models to reflect your specific situation.
How Do You Identify and Approach Potential Buyers?
We use a proprietary buyer database along with advanced tools to identify and vet strategic, financial, and institutional buyers. We also research your competitive landscape to uncover high-value buyers who may not be actively in the market—but are a perfect fit.
What Is a Business Exit Strategy?
An exit strategy is a structured plan for transitioning ownership while maximizing value. We work with business owners to develop a strategy that aligns with personal and financial goals—whether that's retirement, a new venture, or something else.
What Are Common Mistakes When Selling a Business?
Common missteps include inadequate preparation, emotional decision-making, poor valuation assumptions, and revealing too much too soon to buyers. Our process is designed to avoid these pitfalls and keep deals on track.
How Do I Know If It's the Right Time to Sell My Business?
The “right time” is different for every founder. It’s often driven by personal readiness—retirement, burnout, or a shift in priorities—as well as market timing. We help you weigh those factors objectively and make an informed decision.
Does Breakwater M&A Provide Resources for First-Time Sellers?
Yes, we specialize in working with first-time sellers. We provide educational resources, step-by-step guidance, and a clear roadmap so you’re never in the dark throughout the M&A journey.
Related Reads:
How to Find the Right M&A Advisor
A step-by-step guide to choosing the right advisor to maximize value, reduce stress, and avoid costly mistakes.
How to Sell a Business with $500K in EBITDA or More
Learn how buyers assess profitability—and how to position your $5M+ revenue business for premium valuation.
The Million Dollar Exit Guide - Part 1
In this 6 part series, learn how to build your own million dollar exit with actionable steps you can take in planning the exit of your business (it’s never too early to exit plan).
📥 Want the Full Guide?
Get access to The Complete Million Dollar Business Exit Guide (includes our Exit Checklist)—downloadable with one click and packed with tools, checklists, and insights.
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