{"ok":true,"canonical_url":"https://dealroom.so/glossary/business-broker","api_url":"https://dealroom.so/api/public/glossary/business-broker","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"business-broker","term":"Business broker","group":"People and paperwork","definition":"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":"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.","url":"https://dealroom.so/glossary/business-broker","official_sources":[],"related":[{"slug":"ma-advisor","term":"M&A advisor","url":"https://dealroom.so/glossary/ma-advisor"},{"slug":"nda-buyer-verification","term":"NDA","url":"https://dealroom.so/glossary/nda-buyer-verification"},{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"Can I use pre-closing expenses, like a business broker's fee, as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-pre-closing-expenses-like-a-business-broker-s-fee-as-part-of-my-equity-injection"},{"question":"What is the primary role of my business broker or M&A advisor in the SBA 7(a) loan process?","url":"https://dealroom.so/sba-7a/questions/what-is-the-primary-role-of-my-business-broker-or-m-a-advisor-in-the-sba-7-a-loan-process"},{"question":"What role does the business broker play in expediting or delaying the SBA 7(a) loan application process for an acquisition?","url":"https://dealroom.so/sba-7a/questions/what-role-does-the-business-broker-play-in-expediting-or-delaying-the-sba-7-a-loan-applica"},{"question":"What role do business brokers play in the SBA 7(a) loan process?","url":"https://dealroom.so/sba-loans/basics/what-role-do-business-brokers-play-in-the-sba-7-a-loan-process"},{"question":"Can funds from a personal investment account, like a brokerage account, count towards equity injection?","url":"https://dealroom.so/sba-loans/basics/can-funds-from-a-personal-investment-account-like-a-brokerage-account-count-towards-equity"},{"question":"Can personal investment accounts like brokerage portfolios serve as additional collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-personal-investment-accounts-like-brokerage-portfolios-serve-as-additional-collateral-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Business broker","url":"https://dealroom.so/glossary/business-broker","source_type":"DealRoom Data"}}