Glossary · People and paperwork
Business broker
In short
The seller's agent on smaller deals — lists the business, screens buyers, runs the process. Paid by the seller, usually around 10% of the price.
What it means in a deal
A business broker represents the seller, not you — that matters when you're reviewing deal terms. They receive a commission (typically 8–12% of the purchase price, paid at closing) only when a deal closes, which creates an incentive to make deals happen. Some brokers are excellent at running structured processes and providing clean financial packages; others list businesses with little supporting documentation. As a buyer, you can ask for references from previous transactions.
Related terms
Common questions about Business broker
- Can I use pre-closing expenses, like a business broker's fee, as part of my equity injection?
- What is the primary role of my business broker or M&A advisor in the SBA 7(a) loan process?
- What role does the business broker play in expediting or delaying the SBA 7(a) loan application process for an acquisition?
- What role do business brokers play in the SBA 7(a) loan process?
- Can funds from a personal investment account, like a brokerage account, count towards equity injection?
- Can personal investment accounts like brokerage portfolios serve as additional collateral for an SBA 7(a) loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-16 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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