Lessons from the field
Co-Brokers as Allies (and Enemies): Why Business Brokers Who Share Listings Close More Deals
Phil Pisterielli, a veteran Maryland business broker, says working with other brokers is the best and the worst part of his job. Here's his story of a deal that closed without any broker at all, why hoarding listings backfires, and how to co-broker a business sale so everyone gets paid.
Quick answer
Co-brokering is when two or more business brokers work together on one sale, usually with one broker representing the seller's listing and another bringing the buyer, and the commission is split under a written agreement. Business brokers who share listings reach more qualified buyers, close more deals and lose fewer of them to buyers and sellers who go around the brokers. Brokers who hoard listings to keep the whole commission often end up with no commission at all. To co-broker safely, agree on the split in writing before any introduction, register the co-broker's buyer with an NDA, control who sees confidential information, and keep a dated record of who introduced whom. A free, printable co-broker checklist is available to download from this article.
The best and worst part of the job
Phil Pisterielli has been a business broker in Maryland for many years. (You may remember him from Never Neglect Your Business, No Matter the Size.) Ask him about working with other brokers, and he'll tell you it's the best and the worst part of the job. Often, it's the difference between success and failure.
“Business brokerage is one of the industries in which you want more, not less, guys out there. You need colleagues dredging up leads on businesses for sale.”
Why brokerage needs more brokers, not fewer
Phil's problem isn't buyers. It's sellers.
“I have literally thousands of buyers in my database. I need sellers and that's what the new guys do well. My clients are constantly asking for new businesses, so when the new guys get them, I'm all over them.”
Most of Phil's own listings come from repeat clients and referrals. Newer brokers, hungry and prospecting every day, find sellers that a veteran never would. Put a newer broker's listing together with a veteran's buyers, and you have a deal. That's co-brokering at its best.
The hoarders
Then there's the other kind of broker.
“There's always the hoarders, as I call them. These guys who think it's better to hold onto a listing and try to get both ends, rather than share and get the deal done. It never works for them.”
Phil's buyers are ready. “My guys are seasoned. They have money. They're ready to go. And these guys will ignore them because they want 100 percent of the commission.”
He laughs. “Penny wise, pound foolish.”
The deal that closed without any brokers
Phil has a story that proves the point.
“One broker in my firm had a huge listing in northern Virginia. Payroll services. I had a buyer but he said he had a guy ready to go. Kept saying for months that it would close this week or next week or next month. We gave up on it. Turns out, he had no concrete buyer. He just didn't want to share.”
Then Phil's buyer heard about the business on his own.
“My buyer found out about the listing at a business conference, and they made a deal over the weekend. No brokers. No commissions! Can you believe that? If he hadn't been so greedy, we both would've benefitted!”
“Suffice it to say, that broker regretted it, almost as much as I did,” Phil says. And with that, he excused himself to go close a dry cleaner deal.
Penny wise, pound foolish
Vertica CRM builds technology for business brokerage firms in the U.S. and 10 other countries, including Phil's firm. I was a business broker before I built software for them, and I've seen Phil's story play out more times than I can count.
“It's funny that Phil used that penny wise, pound foolish analogy because it's perfect for this. So many brokers lose out on deals due to a colleague holding onto listings, waiting for a big payday that might not happen. It does happen for some, but really rare in comparison.”
Half of a commission that closes is worth infinitely more than all of a commission that doesn't. And the longer a hoarded listing sits, the more likely the seller is to lose patience, find a buyer on their own, or take the business off the market.
“Brokers need to keep track of each other and each other's clients in order to make deals happen. Any given buyer can drop out of a deal for a hundred different reasons. You need to have a lot of balls in the air.”
What is co-brokering in business brokerage?
Co-brokering is when two or more business brokers cooperate on the sale of one business and share the commission. Most often, the listing broker represents the seller and a second broker brings and works with the buyer. The terms, including the split, are agreed in writing before the buyer is introduced.
Co-brokering takes a few forms:
- In-house co-brokering: two brokers in the same firm, one with the listing and one with the buyer. This is Phil's story, and it's where firm policy matters most. (See your company culture.)
- Outside co-brokering: brokers at two different firms, often in different areas or industries, under a written co-brokerage agreement.
- Buyer's broker: a broker hired by the buyer to find and negotiate a business, paid by a share of the listing commission or by the buyer.
- Referral only: a broker or partner who introduces a buyer or seller and receives a referral fee without working the deal. (See our guide to referral fees and co-brokerage agreements.)
| Hoarding | Sharing (co-brokering) | |
|---|---|---|
| Buyers reached | Only your own | Yours plus every cooperating broker's |
| Time on market | Longer | Usually shorter |
| Commission on paper | 100% | A split, often around half |
| Commission in practice | Often nothing, if the deal never closes | A real check when it closes |
| Seller outcome | Fewer offers, more frustration | More qualified buyers, more competition |
| Risk of being cut out | High, when buyers find the seller on their own | Lower, with registration and a written agreement |
| Reputation | Known as a hoarder | Known as someone brokers want to work with |
What the numbers say about co-brokering
Phil isn't alone, and neither are the hoarders. In one industry survey of business brokers, 52% of respondents said co-brokered deals made up 15% or less of their deals, and 38% said less than 5%.
The reasons brokers gave for not co-brokering, from most to least common, were: no need, confidentiality, legal concerns, bad experiences in the past, “incompetent brokers,” and trust or control issues. Phil's story is the answer to most of them.
Buyers dropping out make the case even stronger. Deals fall apart for many reasons: in Axial's Dead Deal Report on deals that died after a letter of intent in 2025, the leading causes were diligence findings (25.3%), quality of earnings gaps (21.3%), renegotiation challenges (14.7%), seller decisions (13.3%) and financing constraints (10.7%). Every listing needs a backup buyer, and other brokers' databases are the fastest place to find one.
Why brokers say no to co-brokering, and the answer to each
| Objection | The answer |
|---|---|
| “There's no need” | Every listing benefits from more qualified buyers, and every buyer can drop out. A co-broker's buyer is your backup offer. |
| “Confidentiality” | The co-broker's buyer signs the same NDA as any other buyer, and you still decide what they see and when. |
| “Legal concerns” | Put the split, scope, protection period and non-circumvention terms in a written agreement, and confirm both brokers are licensed where required. |
| “It didn't work before” | Most failed co-brokes fail on unclear terms. Agree on everything before the introduction. |
| “The other broker is incompetent” | Then set the rules: you stay in control of the listing and the seller, and the co-broker manages their buyer. |
| “I'll lose control” | The listing broker keeps representing the seller. Sharing a buyer doesn't mean handing over the deal. |
How to co-broker a business sale, step by step
- Set your co-brokering policy. Decide which listings you'll share, the default split and who approves exceptions, and publish it so other brokers know how to work with you.
- Agree in writing before the introduction. Cover the parties and licenses, the deal, the split, when it's paid, a protection period and non-circumvention. (What to put in a co-brokerage agreement.)
- Register the co-broker's buyer. The buyer signs your NDA and provides what any buyer would, such as a profile and proof of funds. (Buyer registration that takes a minute.)
- Control the information. Release the CIM and financials only to approved buyers, and keep a record of what each buyer received.
- Agree on who talks to whom. Usually the listing broker manages the seller and the co-broker manages the buyer. Set expectations for updates and response times.
- Track every introduction. Record who introduced each buyer, when, and to which listing. That dated record is what protects your commission if anyone tries to go around you.
And after the closing, pay exactly what the agreement says, on time. A co-broker who's paid promptly will bring you the next buyer.
Scripts for proposing a co-broke
To an outside broker, when you have a listing: “Hi [name], it's [your name] with [firm]. I've just listed a [type of business] in [area], about [revenue or cash flow]. I know you work with buyers in that space. I'm happy to co-broke on [split] terms, in writing, before any introduction. Want me to send the teaser?”
To a listing broker, when you have a buyer: “Hi [name], I have a qualified buyer, with proof of funds, looking for a business like your [listing]. Do you co-broke? If so, please send your agreement and NDA, and I'll have my buyer sign today.”
To a colleague who's sitting on a listing: “I have two buyers who fit your [listing]. Let's put a split in writing so we can both get paid. If your buyer closes first, great; if not, mine are ready.”
Free download: Co-Broker Checklist (printable PDF)
Everything you need to co-broker a business sale on one page: questions to ask before you share, what to put in the agreement, how to register the co-broker's buyer, how to run the deal together, what to do at closing, red flags in a co-broker and where to find co-brokers, plus the scripts above. Download the free co-broker checklist (PDF).
How to protect yourself without hoarding
The fear behind hoarding is real: brokers worry that a co-broker or their buyer will go around them. The answer isn't to hide the listing. It's to protect it:
- A written agreement first, with a protection period and non-circumvention terms, signed before anyone learns the business's name.
- A dated registration record for every buyer, showing who introduced them and when.
- A clear first-contact rule. Some firms publish co-brokerage programs with exactly this kind of rule. IBA Business Brokers, for example, shares commissions with licensed brokers, but not when the buyer contacted the firm directly before the broker got involved.
- Controlled access to confidential information, so a buyer only sees what you've approved.
- A licensing check. Many states regulate business brokers, and some require a real estate or broker license. Confirm both brokers are licensed where required before agreeing to split a fee. (This is general information, not legal advice.)
Phil's payroll services deal is the reminder: the biggest risk to a commission usually isn't a co-broker. It's a listing that sits until the buyer and seller find each other without you.
Where to find co-brokers
- Your own firm. Start in-house. Make every listing visible to every broker, and agree on how splits work before they're needed.
- Professional associations. The IBBA, M&A Source and state business broker associations connect brokers across regions and industries.
- Shared listing services. Some regional associations run their own listing services for members to share listings and buyers.
- Brokers in other areas and industries. A broker two states away, or one who specializes in an industry you don't, can bring buyers you'd never reach. (Casting a wider net.)
- Business-for-sale marketplaces. Many listings note whether the broker co-brokes, and other brokers watch for them.
New brokers: team up with experienced ones
“And new brokers should really work with experienced brokers to close deals and get checks.”
It works both ways. Newer brokers prospect harder and find sellers. Veterans like Phil have buyers, experience and relationships with attorneys, accountants and lenders. A newer broker who shares a first few listings with a veteran learns how deals actually close, and gets paid sooner. A veteran who shares buyers with newer brokers gets the listings their clients keep asking for.
What the IBBA Code of Ethics says about fellow brokers
The International Business Brokers Association's Code of Ethics speaks directly to how brokers should treat each other. It says a business broker “should seek no unfair advantage over his/her fellow brokers” and “should willingly share with them the lessons of his/her experience and study,” and that brokers should conduct business “to avoid controversies with his/her fellow brokers.”
On compensation, the Code says a broker “should not accept compensation from more than one party” without “full knowledge of all parties to the transaction.” In a co-brokered deal, that's one more reason to put the split in writing and disclose it.
How a CRM makes co-brokering easy
- Listings visible firm-wide, so every broker can match their buyers to every listing, not just their own.
- Credit recorded automatically. When a buyer registers, the CRM records who introduced them, when and for which listing.
- Co-brokerage agreements instead of NDAs. When someone inquires about one of your listings and selects “I am a broker,” Vertica CRM can send a co-brokerage agreement instead of the standard buyer NDA, signed online with Vertica Sign before any confidential information is released.
- Buyer approval and the data room. Approval rules decide when a buyer, or a co-broker's buyer, can see the CIM and financials in the data room.
- Splits tracked on the deal, so co-brokered commissions are recorded in the same place as everything else. (Pipeline tools.)
- Shared contact history, so when a buyer drops out, the next broker can pick up where the last one left off.
What's changed since 2019
When this article was first written, many brokers treated co-brokering as a last resort. That's changing:
- Shared listing services have grown. Business Brokers of Florida, a statewide association with its own listing service for members, reported that almost thirty percent of the deals completed among its members in 2022 were co-brokered.
- Paperwork no longer slows a shared deal down. Co-brokerage agreements and NDAs are signed online in minutes, not faxed back and forth for days.
- Data rooms control what each buyer sees, which answers the confidentiality objection for many brokers.
- Buyer matching is getting smarter. AI tools can match buyers to listings across a firm's whole database. (More in our guide to AI for business brokers.)
Co-broker with confidence in Vertica CRM
See how Vertica CRM sends co-brokerage agreements automatically, records who introduced every buyer and tracks splits on every deal. 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
What is co-brokering in business brokerage?
Co-brokering is when two or more business brokers cooperate on the sale of one business and share the commission. Usually the listing broker represents the seller and a second broker brings the buyer, under a written agreement signed before the buyer is introduced.
Why should business brokers co-broker?
Co-brokering puts more qualified buyers in front of each listing, shortens time on market, provides backup buyers when a deal falls through, and reduces the risk that a buyer and seller find each other and close without any broker.
Why do some business brokers refuse to co-broke?
Brokers commonly cite no need, confidentiality, legal concerns, bad past experiences, doubts about other brokers' competence, and trust or control issues. A written agreement, buyer registration with NDAs and controlled access to confidential information address most of them.
What is a listing hoarder?
A hoarder is a broker who holds onto a listing and refuses to share it, hoping to collect both sides of the commission. Hoarded listings often sit longer, frustrate sellers and sometimes close without any broker at all.
How do business brokers split commissions on a co-brokered deal?
There's no single standard. Equal splits between the listing and buyer brokers are common, but splits are negotiated and should reflect who does the work. Agree on the split in writing before the introduction.
What should a co-brokerage agreement include?
The parties and their licenses, the deal it covers, what counts as an introduction, the split and how it's calculated, when it's paid, a protection period, confidentiality and non-circumvention terms, communication responsibilities and both parties' signatures.
How do you stop a buyer or co-broker from going around you?
Sign a co-brokerage agreement with non-circumvention terms before the introduction, have every buyer sign an NDA, keep a dated record of who introduced each buyer, and release confidential information only to approved buyers.
Do co-brokers need to be licensed?
Rules vary by state. Many states regulate business brokers, and some require a real estate or broker license. Confirm both brokers are licensed where required before agreeing to split a fee.
Should new business brokers work with experienced brokers?
Yes. Newer brokers often find sellers, while experienced brokers have buyers and know how deals close. Sharing listings helps newer brokers learn and get paid sooner, and gives veterans more listings for their buyers.
What does the IBBA Code of Ethics say about other brokers?
It says a business broker should seek no unfair advantage over fellow brokers, should willingly share the lessons of experience, should avoid controversies with fellow brokers, and should not accept compensation from more than one party without the full knowledge of all parties.
How common is co-brokering among business brokers?
It varies widely. In one industry survey, 52% of brokers said co-brokered deals were 15% or less of their deals. Business Brokers of Florida reported that almost thirty percent of deals completed among its members in 2022 were co-brokered.
Is there a co-broker checklist for business brokers?
Yes. Vertica CRM offers a free one-page Co-Broker Checklist (PDF) covering what to decide before you share, what to put in the agreement, how to register the co-broker's buyer, how to run the deal together, what to do at closing and scripts for proposing a co-broke.
How does Vertica CRM help with co-brokering?
When an inquirer selects “I am a broker,” Vertica CRM can send a co-brokerage agreement instead of a buyer NDA, signed online with Vertica Sign. It also records who introduced each buyer, controls data room access and tracks co-brokered splits on the deal.