Selling your business yourself can save a broker’s fee. It can also put pricing, buyer screening, confidentiality, negotiations, and transaction coordination on your shoulders. All while you continue running the company.
Neither option is right for every owner. The best choice depends on whether you already have a credible buyer, how complex your sale is, how much time you can give it, and how much support you need to protect the outcome.
WHAT SELLING IT YOURSELF REALLY MEANS
A private sale is more than agreeing on a price with an interested buyer. You’ll need to decide what the business is worth, explain the opportunity, find and qualify prospects, respond to questions, and decide what information to share and when.
If talks move forward, you’ll also face financial disclosure, buyer due diligence, negotiations over price and terms, and coordination with your attorney, CPA, lender, and escrow provider. Legal documents and lease, license, or contract issues may require additional back-and-forth.
That work can take real attention. If you’re still responsible for customers, employees, and daily decisions, a sale can become a second job at exactly the time you need to keep the business performing well.
THE TWO BIG DIY RISKS: PRICE AND PRIVACY
Pricing without a market-based view can cost you. Set the price too high, and qualified buyers may pass before you get meaningful conversations. Set it too low, and you may accept less than the business could have achieved. An online estimate or a story about what another owner received is not a substitute for reviewing your company’s financial performance and relevant market comparisons.
A business valuation in California can give you a more grounded starting point. Some owners look for small business valuation services before they decide whether to sell at all. The point isn’t to promise a particular price. It’s to understand your position before setting expectations or responding to an offer.
A public listing can expose the sale. A for-sale ad may reach people you didn’t intend to tell: employees, customers, suppliers, or competitors. Even a buyer who seems serious at first may not be qualified, or may simply be curious. A direct conversation with a potential buyer doesn’t automatically protect your information, either.
A confidential business sale depends on how information is managed. Use a written confidentiality agreement before sharing sensitive details, screen prospects, and disclose information in stages. An early overview should not reveal customer names, employee details, or proprietary information.
For instance, even an inquiry from a buyer based in Portland should be treated as an inquiry to qualify, not a reason to send detailed financials right away. Distance and a polished introduction are not proof of financial capability or serious intent.
WHAT A BROKER ADDS, and WHAT THE FEE MEANS
A business broker can help you position and market the opportunity, bring it to a broader pool of prospects, screen buyers, manage inquiries, and guide the process from initial interest through negotiations and closing coordination. That support can matter if you don’t already have a buyer or can’t take on the sale process yourself.
A broker’s fee is a real cost, and the terms vary. Before signing, understand how the fee is calculated, what transaction value it applies to, whether any other charges apply, and what the agreement says about exclusivity, duration, and termination. Review the agreement with your attorney if you have questions.
The fair comparison is not simply “commission versus no commission.” Consider the total outcome: the fee, the time you spend, the quality of buyer interest, the confidentiality protections, and the terms you ultimately accept. A broker cannot guarantee a higher sale price. But buyer outreach, screening, and experienced support may help you test the market more effectively and avoid spending weeks with prospects who can’t complete a deal.
California’s Department of Real Estate explains that business opportunities can include the sale or lease of an existing business and its goodwill. Licensing requirements can depend on the role and transaction, so check credentials and get appropriate professional advice. You can read the California DRE’s reference on business opportunities. A broker is not a substitute for your lawyer or tax adviser.
WHEN SELLING IT YOURSELF CAN MAKE SENSE
A direct sale may be practical when:
- You already have a known, credible buyer who understands the business and is prepared to move forward.
- You’re transferring the company to family and both sides have clear expectations and independent professional advice.
- The business is very small and straightforward, and you have the time and confidence to manage the process.
- You know a strategic buyer in your industry and have a genuine relationship with that company or buyer.
Even in these situations, “selling it yourself” doesn’t have to mean handling everything yourself. An attorney can help with transaction documents, and a CPA can advise on financial and tax considerations. You may also choose limited broker support (for example, for a valuation, buyer search, or negotiation) if the scope and fee are clearly defined.
ASK YOURSELF BEFORE YOU DECIDE
Before choosing how to sell a business in California, answer these questions honestly:
- Do I have a buyer who is genuinely qualified and ready to proceed?
- Can I set a supportable price and assess the full terms of an offer?
- Can I protect sensitive information and keep the sale confidential?
- Do I have time to respond to inquiries and coordinate the process without neglecting the business?
- Who will advise me on legal, tax, lease, and escrow questions?
- What is the broker’s fee agreement, and what specific work does it cover?
If you don’t know who the buyers are or how to reach them discreetly, going alone may take longer and create more exposure than you expect. If you already have the right buyer and a simple transaction, a broker may not be necessary for every step.
CHOOSE THE SUPPORT THAT FITS YOUR SALE
There isn’t one right route for every owner. A direct sale can make sense when a strong buyer is already at the table and you have the time and professional support to manage the details. A broker may be helpful when you need buyer outreach, qualification, discretion, and a steady guide through negotiations and closing coordination.
If you’re weighing your options, start with a clear view of what your business could be worth and what a sale would involve. David Mayfair’s selling services include a free, sale-focused valuation. You can request your valuation, schedule a conversation, or contact David with questions. A confidential, no-pressure discussion can help you decide what makes sense for your situation and exit strategy as a business owner.
ABOUT DAVID
David Mayfair is a Business Sales Advisor at SD Business Advisors. David Mayfair and his team have sold over 850 businesses since 2007. He learned about the industry when he became a business buyer in 2000. He offers a free, sale-focused valuation and a confidential, no-pressure process. Contact him at 650-304-1138.
