Broker vs M&A advisor vs direct introduction
| At a glance | Business broker | M&A advisor | Direct introduction (Axia) |
|---|---|---|---|
| Who they work for | You, the seller, under a listing agreement. | You, the seller, under an engagement letter. Some advisors also take buy-side mandates. | The buyer. Axia is engaged and paid by the buyer and does not represent you. You represent yourself or hire your own advisors. |
| How buyers are found | Listing marketplaces, the broker's own buyer list and network. Usually many buyers. | Targeted outreach to strategic and financial buyers, often run as a competitive process. | One buyer at a time, who has already set criteria your business fits. |
| Who pays | You, usually as a success fee at closing. Some also charge an upfront fee. | You, usually a retainer plus a success fee at closing. | The buyer pays Axia. You pay Axia nothing, whether or not you sell. |
| Usually fits | Smaller, owner-operated businesses with a broad pool of individual buyers. | Larger businesses, complex structures, or sales where competitive tension matters most. | Owners open to a specific buyer who want a quieter conversation before deciding anything. |
| Watch for | Long exclusive listing terms, and how your business is kept confidential while it's marketed. | Retainers you owe even without a sale, and tail clauses on buyers introduced during the engagement. | Nobody negotiates for you, and one buyer means no competing offers unless you go find them. |
When a business broker is the right call
A broker earns their fee by doing the work most owners don't have time for: preparing the listing, finding and screening buyers, keeping the process moving and getting the deal to closing. That is worth paying for when:
- You don't have a buyer in mind and want your business in front of as many qualified buyers as possible.
- You're still running the business day to day and can't manage buyer calls, data requests and deadlines yourself.
- Your business suits individual buyers, such as owner-operators and first-time acquirers, who mostly look on listing marketplaces.
- You want one person accountable for the whole process, from pricing to closing.
When a broker isn't the right fit
A broker is not automatically the best route. It may not fit when:
- A buyer has already approached you and you want to hear them out before committing to an exclusive listing.
- Confidentiality matters more than reach. A wide marketing process puts your business in front of more people, including people you may not want to know.
- The deal is large or complex enough that you need an M&A advisor's process, or an attorney and accountant, more than a listing.
- You're not sure you want to sell yet. An exclusive agreement is a commitment; an exploratory conversation is not.
Business broker vs M&A advisor
The two titles overlap, and neither is used consistently. The practical difference is the kind of deal and the kind of process. Brokers mostly sell smaller, owner-operated businesses, often to individual buyers, by listing the business and working a broad pool of buyers. M&A advisors mostly work on larger companies and run a targeted, negotiated process with strategic and private-equity buyers, often with a retainer on top of the success fee.
Licensing differs too. Depending on the state and how the deal is structured, an intermediary paid a success fee on the sale of a company may need a state license or a securities registration, or may rely on an exemption such as the federal M&A broker exemption [1]. Ask anyone you hire which license or exemption they operate under.
Selling without a broker: direct buyer introductions
You can sell a business without a broker. Many owners first hear from a buyer directly, or through a firm the buyer has hired to find businesses like theirs. That is what Axia does: a buyer such as a private equity firm, search fund, strategic acquirer or holding company sets its criteria, and Axia introduces it to owners whose businesses fit.
The trade-off is simple. A direct introduction is quieter and costs you nothing, but Axia works for the buyer, not for you. If the conversation turns serious, bring in your own attorney and accountant, and consider a broker or advisor if you want to test the offer against the market.
What brokers and advisors charge
We don't publish a fee percentage here because we don't have a sourced figure we're willing to stand behind, and fees vary widely by deal size, firm and region. What we can say is how fees are usually structured: brokers mostly charge a success fee paid at closing, sometimes with an upfront or marketing fee, and M&A advisors usually charge a monthly or upfront retainer plus a success fee.
Before you sign, get the full fee schedule in writing and ask: Is there a minimum fee? What do I owe if the business doesn't sell? How long is the exclusive term? Does a tail clause apply to buyers I bring myself, or buyers introduced after the agreement ends?
What Axia does and doesn't do
Axia Growth finds privately held companies that fit a buyer's acquisition criteria, calls their owners, and introduces interested owners to that buyer. The buyer pays Axia. Owners pay Axia nothing [2].
Axia is not your broker or advisor. It does not represent sellers, value businesses, negotiate terms, structure deals, or take part in due diligence or closing, and it holds no business-broker, real estate or securities license [2]. If you want someone negotiating on your side, hire your own broker, M&A advisor or attorney. See who pays for how the model works.
Whichever route you take, know your number first
A broker's suggested price, an advisor's range and a direct buyer's offer are all easier to judge if you already know roughly what businesses like yours sell for. The multiples index shows median EBITDA and SDE multiples by sector and size band [3], and the value range calculator applies them to your earnings in about a minute.