If you have two savvy parties, purchasers and sellers, who have gone through this process before, and have come to an agreement, have financing in place and just need to transact the deal, then a broker may not be appropriate. Having said that, you never know what could go wrong midway through a transaction. In a case where two closely-held parties are involved, a broker may not be required. Typically, what we see is that one party requires that advice and guidance, and the other party who maybe doesn’t. It comes down to the seller or purchaser being honest with themselves about their level of acumen.
For example, in buying your house you may hire an inspector to make sure that the house is of the quality being represented. Or, when buying an expensive vehicle you may have a mechanic give it a pre-purchase inspection to make sure that the car is in good shape. The role of a business broker is very similar. If the deal is closely held, then the broker is the last check. In general, a broker’s services tend to be advantageous in executing a deal smoothly, however it does depend on the circumstances involved.