Lessons from the field
Business Brokers Ask: Do I Go It Alone or Join a Firm?
Lou Brill became a business broker after losing his Wall Street job, joined a mid-sized firm and closed more than 100 deals in 13 years. Here's his story, the real pros and cons of going solo, joining a firm or buying a franchise, and a free startup checklist for new business brokers.
Quick answer
Whether a business broker should go independent or join a firm depends mostly on personality, experience and money. Joining an established firm gives new brokers training, shared listings and buyers, a known brand and colleagues to learn from, in exchange for a share of each commission. Going independent means keeping more of each fee and full control, but paying for your own marketing, technology, licensing and insurance, and finding every listing yourself. Franchise brokerages such as Transworld Business Advisors and Sunbelt Business Brokers sit in between: your own business, with a brand, training and systems, for an upfront investment and ongoing fees. Many brokers start in a firm and go independent later. Either way, check your state's licensing rules first. A free, printable startup checklist for new business brokers is available to download from this article.
From Wall Street to a bagel shop
Several months after 9/11, Louis (Lou) Brill lost his job as a vice president at Citigroup. He wanted a complete change of direction, but didn't know what it was yet. Then he went out for breakfast.
“They came into this bagel shop where I was eating breakfast with my family,” he explains from his home in Highland Park, NJ. “I was fascinated as they asked the owner if he wanted to sell. The owner said, ‘I just opened up.’”
“They” were the owner of a mid-sized New York brokerage and a prospective broker, out canvassing business owners. The bagel shop owner's answer: “Okay, call me in ten years.”
“Here's a guy who talks like he's as sure of this as the sun rising in the east,” he laughs.
After years of Wall Street's quarterly and annual targets, a ten-year horizon was a revelation. “I asked for the guy's card and the owner gave it to me.” Lou started learning how to help people buy and sell businesses.
Thirteen years, more than 100 deals, and a team
Lou stayed with that firm for 13 years and closed more than 100 deals, each one marked on a map of New Jersey. (You can read how he built that map in Casting a Wider Net.)
“Me, I liked being part of a team. I wanted other brokers getting listings that I could pitch to my guys, and vice-versa. We had quarterly sales meetings and that helped because we encouraged and learned from each other.”
He also valued the flexible schedule. A couple of years ago, Lou left full-time brokering for another professional opportunity, closing a deal or two a year part-time before focusing on his new role.
“I don't think I could've done it solo,” he says. “But there are some lone wolves who make a great living. I met some in the course of my career. I think it depends on the personality.”
“It depends on the person”
I agree with Lou. I was a business broker for more than a decade, at a firm, before I founded Vertica CRM, and our clients range from sole practitioners to firms with dozens of brokers.
“Look, there are lots of advantages to being on your own and there are others for being in a firm. Some people become brokers because it's different from just about any other sales job. It's not real estate. You can have listings hundreds of miles from home. You don't need to see it in person even when you list. It can all be done online.”
“But there are some folks who don't want to rely on anyone. They want to operate solo. Other brokers want to have other people out there, hustling up leads on businesses for sale.”
“Being with a firm or not depends on the person. What's okay for me might not be okay for you. The one thing I would say is that, if you want to make money as a business broker, be prepared to work. It's tough to start but the rewards for the good brokers are pretty amazing.”
Independent, firm or franchise: the three paths compared
| Independent | Join a firm | Franchise | |
|---|---|---|---|
| Commission | You keep it all | Split with the firm | You keep it, minus franchise fees |
| Listings and buyers | You find every one | Shared across the firm | Your own, plus a network |
| Training | Self-taught | From experienced brokers | Franchisor program |
| Brand | Your own, built from zero | The firm's | A national brand |
| Startup cost | Licensing, marketing, technology | Usually low | Franchise fee plus startup costs |
| Independence | Complete | Firm policies | Franchise rules |
| Best for | Experienced brokers with a network | New brokers, team players | Owners who want a system |
Joining a firm: what you get, and what you give
- Shared listings and buyers. Exactly what Lou valued: other brokers' listings to pitch to your buyers, and the reverse. (Co-brokering for business brokers.)
- Training and mentoring. Learning from experienced brokers shortens the painful first year.
- A brand and a reputation sellers already trust.
- Systems and support: a CRM, a website, marketing, administrative help and sometimes leads.
- Colleagues. Quarterly sales meetings, encouragement and someone to call when a deal gets complicated. (Your company culture.)
In return, the firm keeps part of each commission. Splits are negotiated and vary widely: many firms use a split that improves as a broker's production grows, and some charge a desk fee instead. Ask about the split, who owns the listings and buyers if you leave, and any non-compete before you sign.
Going independent: what it takes
- A license, where required. Many states regulate business brokers, and some require a real estate or broker license. (See our guide to referral fees and co-brokerage agreements for more on state licensing. This is general information, not legal advice.)
- A way to find listings. Without a firm's brand, every seller comes from your own prospecting, referrals and marketing. (Where your next listing comes from.)
- Technology: a CRM built for brokers, a website that shows your listings, online NDAs and buyer registration, and marketplace listings. (Why business brokers need CRM software.)
- Insurance, a legal entity and contracts: professional liability insurance, an engagement agreement and an NDA you trust.
- Cash to get through the first year. Deals take months to close, so most new brokers need savings or other income until the first commissions arrive.
Franchise brokerages: a business in a box
Franchise brokerages let you own your own firm with a national brand, a training program and systems from day one. As listed in Entrepreneur's franchise directory, Transworld Business Advisors shows a total initial investment of $114,040 to $143,615, and Sunbelt Business Brokers shows $43,450 to $104,000, plus ongoing fees. Figures change, so always review the franchisor's current Franchise Disclosure Document before you decide.
Should you go solo? 7 questions to ask yourself
- Have you closed deals before? Experience and a track record make it much easier to win listings on your own.
- Do you have a network of referral partners, buyers and past clients?
- Can you afford a slow first year without a regular paycheck?
- Do you enjoy prospecting and marketing, or would you rather spend your time on deals?
- Do you work best alone, or with colleagues to learn from and share deals with?
- Is your state's licensing in place, or can you get it?
- Do you have the tools to run a brokerage: CRM, website, NDAs and marketing?
If you answered no to most of them, a firm or a franchise is usually the faster path. Many brokers start in a firm and go independent once they've built a track record.
Free download: New Business Broker Startup Checklist (printable PDF)
Everything you need to start a business brokerage career on one page: licensing and credentials, choosing between a firm, independence or a franchise, the tools you need, finding your first listings and first-year milestones. Download the free startup checklist (PDF).
Credentials that help on either path
The International Business Brokers Association's Certified Business Intermediary (CBI) designation is the best-known credential for business brokers. It requires IBBA membership, required courses in ethics, business brokerage, legal aspects and recasting and pricing, plus electives, three completed deals as the lead seller broker and passing the CBI exam with 70% or higher, all within three years. Joining the IBBA or a state association also connects you with other brokers for referrals and co-brokering.
How Vertica CRM supports solo brokers and firms
- For solo brokers: a CRM built for business brokers from day one, with automated follow-up, online NDAs and buyer registration, so one broker can run like a team. (15 automations that save brokers time.)
- For firms: listings and buyers visible across the firm, roles and permissions, and reporting on every broker's pipeline, so sharing deals is easy. (Involve your team.)
- For both: a website that shows your listings, and the flexibility to grow from one broker to dozens on the same platform. (Vertica Sites features.)
What's changed since 2021
- Remote brokering is normal. As I said in 2021, a listing can be hundreds of miles away and handled online, which makes going solo more practical than ever.
- More owners are getting ready to sell. In Exit Planning Institute research, 91.55% of business owners said they plan to transition out of their business within 10 years, a lot of work for new brokers on any path.
- AI makes one broker more productive. AI can draft listings, CIMs and follow-up emails, which helps solo brokers compete with larger firms. (More in our guide to AI for business brokers.)
- Specialists stand out. Whether solo or in a firm, brokers who build expertise in an industry win listings across a wider area. (Should a business broker specialize?)
Run your brokerage, solo or as a team, with Vertica CRM
See how Vertica CRM helps solo brokers work like a team and helps firms share listings and buyers across every broker. Contact us for a short demonstration.
Schedule a Demo Questions? Call +1 212 381 4994 (USA) or +61 3 8518 4759 (Australia).Frequently asked questions
Should a new business broker join a firm or go independent?
Most new brokers benefit from joining a firm first, for training, shared listings and buyers, a known brand and colleagues to learn from. Experienced brokers with a network and savings are better placed to go independent.
What are the pros of being an independent business broker?
You keep the whole commission, control your own schedule, brand and methods, and choose your own listings and specialty.
What are the cons of being an independent business broker?
You pay for your own marketing, technology, licensing and insurance, find every listing yourself, and have no colleagues to share deals with or learn from.
How do commission splits work at business brokerage firms?
They're negotiated and vary widely. Many firms use a split that improves as a broker's production grows, and some charge a desk fee instead. Ask who owns listings and buyers if you leave, and about any non-compete.
How much does a business brokerage franchise cost?
It varies by franchise. Entrepreneur's franchise directory lists a total initial investment of $114,040 to $143,615 for Transworld Business Advisors and $43,450 to $104,000 for Sunbelt Business Brokers, plus ongoing fees. Always check the current Franchise Disclosure Document.
Do you need a license to be a business broker?
It depends on the state. Many states regulate business brokers, and some require a real estate or broker license, especially when real estate is involved. Check your state's rules before you start.
How do I become a business broker?
Check your state's licensing rules, decide whether to join a firm, a franchise or go independent, learn valuation and the sale process, set up a CRM, website and NDA process, and start building a network of referral partners and buyers.
What is a CBI?
Certified Business Intermediary, the IBBA's professional designation. It requires IBBA membership, required and elective courses, three completed deals as the lead seller broker and passing the CBI exam with 70% or higher, within three years.
How long does it take a new business broker to earn a commission?
Often several months or more, because finding a seller, marketing the business and closing the sale all take time. New brokers should plan for a slow first year.
Can a business broker work remotely?
Yes. Listings can be won, marketed and closed largely online, with phone calls, video walk-throughs, data rooms and e-signature, so brokers can serve sellers far from home.
What tools does an independent business broker need?
A CRM built for business brokers, a website that shows listings, online NDAs and buyer registration, marketplace listings, an engagement agreement and professional liability insurance.
Is there a checklist for starting as a business broker?
Yes. Vertica CRM offers a free one-page New Business Broker Startup Checklist (PDF) covering licensing, credentials, choosing a path, tools, first listings and first-year milestones.