A business broker is a licensed professional (in BC, typically licensed under the Real Estate Services Act or operating under an exemption) who represents a business seller in marketing the business, finding qualified buyers, and facilitating the sale transaction. Business brokers earn their compensation from the seller — typically a commission of 8 to 12 percent of the sale price for smaller businesses and 3 to 6 percent for mid-market deals. This commission structure means a business broker's legal and financial incentive is to close the deal at the highest price for the seller. Buyers who rely on a business broker for advice, valuation confirmation, or deal structuring guidance are receiving counsel from the other side's paid representative. This is not a criticism of brokers — it is simply how the economics work. In Canada, most business brokers are honest professionals, but they have a fiduciary to their seller client. Buyers working with a broker's listing should have independent advisors (an acquisition consultant, CPA, and lawyer) who work exclusively for them. In BC, the Business Brokers Association of Canada and Re/Max Commercial are large networks of business brokers.
A business broker lists a Abbotsford landscaping company for $750,000 and provides the buyer with the seller's unaudited financials and a highlights summary. The broker's job is to represent the seller's interests and facilitate a close at or near asking price. The buyer hires BizBuy.ca independently to do a valuation and due diligence on the same opportunity.
Process knowledge is what separates buyers who close on good terms from those who pay too much or miss problems. Ali applies 17+ years of Canadian acquisition experience to every step.