What questions should I ask a business broker?

Whether buying or selling a business, most people approach a business broker with a general sense of what they need but without a clear idea of what to ask. That’s understandable. For many, it’s the first time they’ve been through the process. But the questions you ask a business broker upfront can have a significant impact on the outcome, whether you’re trying to achieve the best possible sale price or find the right business to buy. This guide covers the key questions to ask a business broker from both sides of the table, so you can go into that first conversation informed and confident.

As a Seller: Questions to Ask a Business Broker Before You Sign

Choosing a broker to sell your business is one of the most consequential decisions you’ll make during the sale process. Here are the questions worth asking before you sign anything.

1. How do you determine the asking price for my business?

Pricing a business correctly from the outset matters more than most sellers realise. Ask the broker to walk you through their methodology. A credible broker will talk about earnings multiples, market conditions, comparable sales and the difference between a business appraisal and a formal valuation. Be cautious of any broker who offers a number before doing a thorough review of your financials. It’s also worth noting that depending on the size of the business being sold, an upfront discussion to understand whether it would be better to sell the business as a share sale as opposed to an asset sale is also important – as there could be CGT implications depending on the method of sale.

2. What experience do you have selling businesses in my industry?

Industry knowledge shapes everything from how a broker positions the business to which buyers they approach. A broker with genuine experience in your sector will understand what buyers in that space are looking for and how to frame your business accordingly.

3. How will you market my business, and to whom?

This is one of the most important questions to ask a business broker before engaging them. Ask whether they use online listings, direct buyer outreach, or their own database of qualified buyers. Find out whether confidentiality will be maintained during the marketing process, and how they qualify enquiries before presenting them to you.

4. Who will I be dealing with day to day?

In some brokerages, the person who signs you up hands the work to a junior team member. Knowing who will manage your sale and how accessible they will be is a reasonable and sensible question to ask.

5. What does your fee structure look like, and when is it payable?

Business broker fees in Australia are typically commission-based and payable on settlement. Understanding how the fee is structured, and whether there are any upfront costs, removes any ambiguity later in the process.

6. How long do businesses in my sector typically take to sell?

There’s no universal answer, but an experienced broker will have a realistic sense of market conditions and typical timeframes. This helps with planning, particularly if you have a lease expiry, retirement date or other timeline in mind.

7. Can you provide references from recent clients?

A strong track record is reassuring, but recent references are particularly useful. Business sale conditions shift, and a broker who performed well two or three years ago should still be performing well now.

As a Buyer: Questions to Ask a Business Broker When Evaluating a Business

Buyers sometimes assume a business broker works exclusively for the seller. While the broker is engaged by and represents the vendor, an experienced broker has an interest in matching the right buyer to the right business. These are the questions to ask a business broker when you’re looking to buy.

1. What is included in the sale price?

Stock, equipment, intellectual property, customer lists, goodwill, and the trading name can all be part of the deal or excluded from it. Asking this question early prevents misunderstandings during due diligence.

2. Why is the owner selling?

This is one of the most revealing questions to ask a business broker when evaluating a business. The broker may not always know the full picture, but their answer, and how they answer it, can be informative. Common reasons include retirement, health, lifestyle change, or a desire to pursue other ventures. These are all very different from a business being sold due to declining performance.

3. Has the business had any previous sale attempts?

A business that has been on the market for an extended period warrants a conversation. Ask what happened and why the previous attempts did not proceed. There may be a straightforward explanation, or there may not be.

4. What does the financial performance look like over the past three years?

Any credible business listing should be supported by financial information. Ask what documents are available, including profit and loss statements, tax returns and, where applicable, BAS statements. Understanding the trading pattern over several years is more informative than a single year snapshot. And of course, we recommend you use a financial professional when conducting your due diligence.

5. Is the owner willing to provide a handover period?

Particularly for service-based businesses where the owner has strong customer relationships, a structured transition period can protect the goodwill you’re paying for. Ask whether the seller is open to this and on what terms.

6. Are there any known risks or issues with the business?

A reputable broker will be transparent about known risks, whether that’s a lease that needs renewing, a key staff member who may leave, or a concentration of revenue in one or two clients. Asking directly shows you’re a serious buyer and sets the tone for an open process.

7. What is the process from here if I want to proceed?

Knowing the steps, from signing a confidentiality agreement through to due diligence, heads of agreement, and settlement, helps you understand the timeline and what will be required of you as the buyer.

Why the Right Broker Makes These Conversations Easier

The quality of a broker is often evident in how they handle these questions. A good business broker in Sydney will answer clearly, without deflection, and will often raise relevant considerations before you even think to ask. They will also understand that buyers and sellers both need accurate information to make sound decisions.

At Core Business Brokers, the team brings 90 years of collective experience to every sale and acquisition. Working across Sydney and the greater NSW region, they have guided clients through businesses of all sizes and across a wide range of industries.

For more information or to start the conversation, contact the team at Core Business Brokers today by phoning 9413 2977 or emailing Roy, Rad or Warren. We are always happy to help.