Business Brokers: Why Selling a Company Is No Estate Agency Job

A business broker mediates companies between sellers and buyers. The term borrows from the estate agent — and that comparison is exactly what misleads: selling a company is not a brokerage transaction but a months-long process of valuation, confidential buyer search, due diligence and contract negotiation.

Anyone entering the sale of their life's work expecting "listing, viewing, notary appointment" underestimates every single phase. The need is real nonetheless: according to the KfW Succession Monitoring 2025, around 545,000 owners in Germany alone aim for a succession by the end of 2029 — most of them for the first and only time.

What does a business broker do?

At the core, what a serious M&A advisor does: value the company, prepare sale documents, discreetly approach suitable buyers, lead negotiations and accompany the closing. "Business broker" and "M&A advisor" describe the same field — with a difference in ambition: "broker" emphasises mediation, "advisor" the managed process. For small businesses (hospitality, retail), some providers do work broker-style with listings and interest lists. Above a certain company size, that model no longer carries.

Why is selling a company harder than selling property?

Because the asset is alive — and because nobody is allowed to know.

	Property sale	Company sale (M&A)
Pricing	Comparables, location, square metres	Valuation from earnings, assets, market — plus negotiation
Marketing	Public listing; visibility helps	Strictly confidential, anonymised approach to selected buyers
Review	Viewing, survey within days	Due diligence over weeks: financials, legal, tax, HR
Contract	Largely standardised deed	Individually negotiated agreement with warranties, earn-out, non-compete
Buyer	Pays and takes over	Must manage leadership, financing and continuation
Duration	Weeks to a few months	Typically 6–12 months; 3–6 months when tightly managed

Three differences weigh heaviest.

First, confidentiality. Property sells through visibility; a company can break on visibility. If a sale becomes known too early, it unsettles employees, customers and suppliers — value erodes before the first buyer sits at the table.

Second, price. There is no price per square metre for companies. Value hangs on earning power, owner dependency and customer structure — and the real price emerges in negotiation, not in a formula. For orientation: What is my company worth?

Third, the review. No buyer pays a six- or seven-figure sum after a viewing. Due diligence dissects numbers, contracts and risks over weeks — and when processes fail here, it is almost always poor preparation, not the company.

How do you recognise a serious provider?

By the same criteria as any M&A advisor: transaction experience in your size class, demonstrable buyer access, transparent fees, named responsibility and practised discretion. The full checklist including red flags is in Choosing an M&A advisor; fee models are explained in What does an M&A advisor cost?

Be wary of providers transferring the broker model to larger companies: mass mailing of company profiles without a confidentiality agreement, listings with recognisable details, high upfront fees without defined deliverables. A company is not an object you "list".

What is the difference between a business broker and an M&A advisor?

The terms describe the same field. "Broker" is used more for small businesses and emphasises mediation; "M&A advisor" stands for the structured, confidentially managed sale process. What matters is not the label but the provider's method, references and discretion.

What does a business broker cost?

Customary are a success fee of a few percent of the purchase price and, depending on the provider, a monthly retainer. Serious providers disclose the structure in writing. Beware of high upfront lump sums without defined deliverables.

How long does a company sale through a broker take?

6 to 12 months are customary in the market — far longer than a property sale. With good preparation and a tightly managed process, the transaction phase can be condensed to 3 to 6 months.

Selling a company is the most important transaction of an entrepreneur's life. Get independent, discreet guidance — IGCP Capital Partners. → igcp.at