What is a business broker?
A business broker is a professional who helps SMEs buy and sell businesses. They handle valuation, marketing, buyer screening, negotiation, and the entire sale process.
Do I need a business broker to sell my business?
While you can sell on your own, most SME owners use brokers for confidentiality, serious buyer access, proper pricing, and smoother negotiations.
How much do business brokers charge?
Most brokers charge a success fee, typically between 2%–10% of the sale value. At The Funding Assembly, you only pay upon successful completion according to our stated fees in our website.
Selling a business—especially a family-owned one—is a life-changing milestone. Whether you’re preparing for retirement, facing succession issues, or simply ready for your next chapter, one question always surfaces:
What is due diligence in a business sale?
Due diligence is a buyer’s detailed review of your financials, operations, assets, contracts, and compliance before finalising the purchase.
How much is my business worth?
Your valuation depends on revenue, profit, industry multiples, assets, goodwill, customer base, and market conditions. Brokers provide a benchmarked valuation based on actual market transactions.
If you’re exploring a sale, this guide explains clearly what business brokers do, why SME owners rely on them, and how a modern brokerage like The Funding Assembly transforms the entire process.
What Is a Business Broker?
A business broker is a trained intermediary who helps business owners sell their companies smoothly, confidentially, and for the best possible price. Think of them as your strategist, marketer, financial analyst, negotiator, and project manager—all rolled into one.
For many family businesses in Singapore and Malaysia, brokers play a crucial role because most owners are selling for the first (and only) time. The process is complex, emotional, and time-consuming. A good broker removes the guesswork and protects your interests from start to finish.
What Do Business Brokers Actually Do?
Below is a clear walkthrough of a broker’s role—especially as it applies to family-owned SMEs.
1. Determine the Real Market Value of Your Business
This is the biggest pain point for most owners. Business brokers analyse:
- revenue, profit, and cash flow
- industry multiples
- operational performance
- brand goodwill
- assets and liabilities
- competitive positioning
The goal is simple: price it right so buyers take it seriously, without leaving too much money on the table.
2. Prepare Your Business for Sale
Most SMEs are not “sale-ready.” Brokers help you clean up and package the business professionally by guiding you on:
- financial documentation
- inventory and asset lists
- compliance and licensing
- operational bottlenecks
- key staff and management processes
This makes your business easier to understand—and more valuable.
3. Market the Business Confidentially
For family businesses, privacy is everything.
A broker ensures:
- employees don’t panic
- suppliers remain confident
- competitors don’t exploit the news
- customers stay loyal
A competent broker uses private channels and buyer networks, your listing reaches only qualified buyers, never the general public.
4. Screen Buyers Before Letting Them In
Not all inquiries come from serious people. Brokers filter out:
- competitors fishing for information
- unqualified buyers
- dreamers with no financing
- corporate scouts without approval
Only real, ready, and financially capable buyers make it through.
5. Negotiate the Deal on Your Behalf
Selling is emotional. Negotiating with buyers even more so.
A broker protects you from:
- lowball offers
- unfair contract terms
- risky payment structures
- aggressive demands
- unnecessary non-compete restrictions
Their role?
To secure the best price, best terms, and lowest risk for your exit.
6. Guide You Through Due Diligence
Once a buyer is interested, the real work begins.
Brokers coordinate:
- accountants
- lawyers
- financial audits
- legal documentation
- operational checks
- compliance verification
This stage is where most deals collapse. A good broker keeps everything organised so the deal doesn’t fall apart.
7. Manage Signing, Completion, and Handover
The final stretch includes:
- drafting the Sale & Purchase Agreement (SPA)
- ensuring conditions are met
- coordinating payments
- transferring assets and licences
- planning the transition period
Brokers stay until the deal is completed—because the last 10% is often the hardest.
Why Do Business Owners Use Business Brokers?
Selling a business is far more complex than running one.
Owners typically choose a broker because they want:
- confidentiality
- serious buyers
- a proper valuation
- professional negotiation
- faster timelines
- fewer mistakes
- better sale outcomes
The right broker often increases deal value and reduces unnecessary stress.
The Funding Assembly Difference
TFA is Singapore’s modern M&A firm built specifically for SMEs.
We stand out because we offer:
- Qualified buyers, not random enquiries
- Automated deal flow systems that remove delays
- Data-driven valuations
- Transparent, success-based fees with zero upfront costs
- Standardised legal templates to speed up the process
Our mission is simple:
Make M&A transparent, fair, and accessible for everyday business owners.
Conclusion: Do You Need a Business Broker?
If you plan to sell your business once in your lifetime, you deserve guidance that protects your legacy and maximises your return.
