Is A Business Broker A Blessing Or A Curse? | Jonathan Jay | 2025 | Buying a Business

In this video, Jonathan Jay delves into the subject of business brokers and whether they are a blessing or a curse. He shares his experience of business brokers, stating that they tend to inflate valuations because they want the upfront marketing fee associated with winning the client.

This, in turn, makes it difficult to buy an existing business because the owner has an inflated opinion of its value.

Jonathan Jay further explains how this happens and gives examples to illustrate his point that business brokers can get in the way of smaller deals by inflating the price expectations of the seller. However, he acknowledges that larger business sales may require the services of a business broker.

If you're interested in learning about acquisition in business, acquisition strategy, buying a small business, business mergers and acquisitions, or how to purchase a business, then this video is for you.

Watch it to gain insights into the business acquisition process and understand the role business brokers play.

[brandonmarcus]

Hey Jonathan - Totally agree with you. Most brokers set unrealistic expectations with sellers.

[alexandervalladares]

Its called a CIM Jonathan ... We prepare it before we take a deal to market.

[ivoryreviewsstuff]

Good points. Our firm doesn’t do any upfront fees and we have non-exclusive agreements. But I agree it’s rare to see this in a brokerage. We price competitively which is why our 80% sell in 90 days. If it’s your first and you don’t have the time then you would want to consider a broker. If you don’t mind going at it yourself then get a good attorney on deck. You can do it either way.

[spartanburgbusinessbroker]

Thanks for the insight, Jonathan. It's good for met to hear others perspectives on the profession. Not sure if things will change with my experience, but from the brokers I have met, 99% of them are trying to bring the seller's expectations down into "the box" of reality. We usually end up running into high expectations given by accountants. If my listing is priced high, it's because the seller asked for it. We tell them what the market is actually yielding based on an analysis of their financials, market comps, etc. and then tell them what we believe the business will actually sell for based on the data.

We also don't take a retainer, unless there is a very specific reason to do so. I have not taken one yet and neither has anyone else in our office. We get paid when the sale closes.

[globalsuccesswomen]

Love to buy and own and sell businesses. It will be a life-changing and remarkable learning on this course on Pandemic. Could you please help me? I am using some prevalent data on good biotech companies to buy them now? Could you please help me where to find the money?

[julindatisanwang]

So is it not good to join to this broker Neptune? Because my Omegapro invested money is transfer to this broker group? Thank you

[tomsullivan]

Listen very carefully to what Jonathon is saying because this is how a qualified buyer approaches the idea of buying a small business.

[DanJackson]

Hi Jonathan,
I’m disappointed that I signed up to receive a hard copy of your book, only to be channelled into your sales funnel and as yet, no sight of any book. Poor form :(

[BusinessBrokerMarcBate]

Hello, Jonathan Jay how are you? This Marc Bate, I'm a LINK Alabang (Philippines) Business Broker, can I connect with you? More power to your Youtube channel.

[philosophyforum]

10x earnings is more like buying stocks in businesses worth hundreds of millions of dollars or pound sterling or euros

[DHDcat]

this video was slowed down intentionnally, 1.5X - 1.7X is the real speed

[pererap]

I experienced the same when I tried to sell my business couple of years back.

[vzlanoxvida]

Sounds like you’ve dealt with bad brokers nothing more… if you follow the proper valuation approaches there shouldn’t be an unreasonable valuation. Multiples are market based primarily, just like real estate. Maybe the barriers to entry are too low for brokers. If they have proper M&A experience the broker is a SUBSTANTIAL help to the transaction, facilitates the negotiation, due diligence and documentation, so much more efficient.

[IAmTjay]

I just thumbed down because I believe this presentation lacks objectivity. It feels like your pushing a stereotype.

[tesfayekenea]

Truth is, often, bitter, I know. But, r u not too brutal?