Business Broker vs M&A Advisor: Which One Fits Your Sale

The difference comes down to deal size

The industry's own survey, Market Pulse from the IBBA and M&A Source, splits the market at $2 million of sale price. Under that is Main Street, where business brokers do most of the selling. From $2 million to $50 million is the lower middle market, where M&A advisors do most of it. Above $50 million you're usually talking to investment banks. The lines blur in the middle, and plenty of firms work on both sides of the $2 million mark.

How each one sells a business

A business broker usually lists the business on marketplaces like BizBuySell with the name hidden, emails it to their buyer database, and takes calls from interested buyers. That works well when the likely buyer is an individual looking to own and run a business, often with an SBA loan.

An M&A advisor usually runs a managed process instead. They write a short anonymous teaser, get buyers to sign an NDA, send a full confidential information memorandum, and then collect first round interest and letters of intent in stages so buyers are bidding against each other. The outreach goes to a chosen list of private equity firms and companies in the same industry, not a public listing.

Buyers and financing

The SBA 7(a) program caps a standard loan at $5 million, and buying a business is an eligible use. That's a big part of why most Main Street deals go to individual buyers. Past a certain size the buyers shift toward private equity groups and companies buying a competitor or a new market, and an advisor's job is mostly getting in front of those buyers.

More buyers usually means more offers. In Market Pulse's Q2 2026 survey, 87% of deals over $5 million drew at least 3 offers and a third drew 10 or more, while the smallest deals often drew one or two.

How long it takes

The same survey has Main Street deals closing in about 6 to 10 months and lower middle market deals in about 11 to 12 months. The longer timeline on bigger deals is mostly due diligence, financing and negotiating the purchase agreement.

What it costs

Brokers on Main Street deals usually charge 8% to 15% of the price with a minimum fee, and advisors on larger deals charge a lower percentage that often steps down as the price goes up, sometimes with a retainer. We cover the ranges in detail in business broker fees.

Licensing

Since March 2023 a federal exemption lets M&A brokers help sell privately held companies with under $25 million of EBITDA or under $250 million of revenue without registering as a broker dealer, as long as the buyer is taking control of the company. It has limits, and it doesn't override state rules, so ask any firm what licenses or registrations they hold for your deal.

Questions to ask before you pick one

• How many buyers will you contact by name, and how many are private equity versus companies in my industry?

• Have you closed deals my size in my industry in the last two years?

• Who works on my deal day to day?

• Is this a listing or a managed process with a teaser, a CIM and rounds of offers?

• Is any retainer credited against the success fee, and what are the tail period and the exclusive term?

• What licenses or registrations do you hold, and who holds the money at closing?

• Can I see your proposal in writing next to two others?

Where Business Advisors of America fits

We work with owners of businesses doing about $1 million to $50 million in revenue, which covers the top of Main Street and the lower middle market. If you're not sure which side of the line your business is on, a free valuation is a good place to start.

Where these numbers come from

Checked on November 10, 2026: the IBBA and M&A Source Market Pulse for market segments, offers and time to close, the SBA 7(a) loan program for loan limits, Foley Hoag on the M&A broker exemption, and Peony and Website Closers on how each one runs a sale. Every firm works a little differently, so these are typical ranges.