How acquisition advisors make money: the retainer, the closing fee, and the referrals around every deal

This article is the written version of the video above. In it I walk through how acquisition advisors make money on the buy side, and why I think it is the quickest route to six figures for a new advisor. It is for anyone thinking about the job: a broker, a banker, a former owner, or someone who is good on the phone and wants to learn deals. If you want the wider picture of the career, read how to become a business advisor first. This piece is only about the money.

The buy side is the simpler side

I will say it plainly: supporting buyers is easier than selling businesses. "The buy side, all you need to do is introduce them to deals."

On the sell side you take a listing, build a package, market it, field every tyre-kicker, and wait months for a buyer who may never come. On the buy side the client already wants to act. Your job is to put the right businesses in front of them, help them make offers, and bring in the people who finance and close the deal.

And anyone can be a buyer. A business owner who wants a second location. A manager who wants to own something. A financial buyer with cash to place. The pool of possible clients is wide, which is why the ads-to-calls model below works at all.

Where the deals come from

The businesses you show a buyer do not have to be your own listings. They can come from any marketplace, and from other brokers.

As I say in the video, "those could be businesses for sale from any other marketplace, BizBuySell, BusinessesForSale, all those websites which you can easily access." You read the listings, match them to the buyer's criteria, and make the introduction. You can also agree terms with the listing broker so that you are paid a share when your buyer closes on their deal.

At Acquisitions.com we now do the first part with AI. It scans 15+ business-for-sale marketplaces every day and screens each listing against the client's buy box. In 2024, when this video was recorded, our team did that by hand. Either way, the advisor's value is not owning the listing. It is the filtering, the introduction, and the help through the offer.

The two fees the buyer pays

Here is how we charged buyers at the time of the video, in my words:

"We charge at least $5,000 retainer up front from the buyers, plus we take a percentage at closing. So we take anywhere from an additional $5,000 to 1 to 2% of the deal."

The retainer. The buyer pays it on day one. It covers 6 to 12 months of support. For that money the advisor helps the buyer find deals, helps them make offers, introduces them to banks and investors, and introduces lawyers and accountants for due diligence. The $5,000 figure is a floor, not a rule. If you are giving more support, or working on a larger deal, you can set it higher.

The closing fee. Paid when the deal closes, by the buyer. Either a flat amount (at least another $5,000 in our model) or 1 to 2% of the purchase price, whichever fits the size of the deal. On a small deal the flat fee is more. On a bigger deal the percentage is more.

The percentage and the flat fee are alternatives, not both. The right-hand column is an illustration, not a quote for any deal. Your own agreement with the buyer sets the numbers.

Why the retainer matters more than it looks

The retainer is small next to a closing fee. But it does two things for a new advisor.

First, it pays you before anything closes. Deals take 60 to 120 days when they go well, and many never close at all. An advisor who is paid only at closing can go six months with nothing. A retainer from each new client means the lights stay on while deals work through.

Second, it separates real buyers from browsers. Someone who pays $5,000 to start a search is going to show up to calls, read the listings you send, and make offers. Someone who will not pay anything was probably never going to buy.

In the video I also suggest the reverse for your first deals: work with no retainer at all, and earn from the introductions you make. That is a way to get a track record. It is not the way to build an income.

The referral income around a deal

This is the part most new advisors miss. Every deal needs a lender, a lawyer, an accountant, and often another broker. Each of those introductions can pay you.

• Banks. "For us, banks are giving us 1% of the loan size." That was our arrangement at the time. A referral fee on a loan is paid by the lender, if the lender offers one. Lenders have their own rules on this, and some loan programs limit or require disclosure of referral fees, so ask the bank in writing.
• Other brokers. If your buyer closes on another broker's listing, you can agree a split. In the video I describe taking 10 to 20% of the other broker's commission, depending on the broker. Agree it before the introduction, in writing.
• Lawyers and accountants. A referral agreement with the diligence team can be a few hundred to a few thousand dollars, or a few extra hours of their time for your client. It depends on the deal and the size of the diligence.

Add it up and a single closing can pay you four times: the retainer, the closing fee, the bank referral and the broker split. None of this is automatic. Each one is a conversation you have before the deal, and a written agreement.

The numbers behind "quickest way to six figures"

The claim in the title comes from a funnel, not from any one deal. These are the numbers I shared in the video. They are what we saw at the time; they are not a promise of what anyone else will see.

1. Run ads to a funnel. The ad sends a would-be buyer to a page where they book a call in your calendar.
2. Expect no-shows. "Show-up rate is about 50 to 60%." So 40 to 50% of booked calls will not happen. That is normal for calls booked online.
3. Aim to close 10%. "You need to aim to close at least 10% of the people you're on the phone with on a retainer." Ten calls held, one retainer.
4. Do the maths on volume. At that rate, ten calls a day could mean one $5,000 retainer a day. That is the line in the video. It assumes a full calendar, a working script, and a real budget for ads.

Then the closing fees and referrals land later, deal by deal. I said in the video that if an advisor is decent at following the script and running the sales process, they should be able to make good money. I stand by that, with the obvious caveat. Ads cost money, calls take hours, and most of the people you speak to will not sign.

Ads or content: pick your speed

Ads are the fastest route I have seen. They are also the only route that costs cash up front and carries real risk.

Personal brand, outreach and content all work. "I just see that it takes longer and you need more patience." If you cannot or will not put money into ads, get your first deal from outreach and content, build a track record, and move to ads later when a lost month of ad spend does not hurt.

Either way, the end state is the same. Once the calendar is full, hire someone to take the calls, and become the person who makes decisions instead of the person on the phone all day.

Where you need a licence

Before you charge anyone a fee, check two things.

Securities. If the buyer is purchasing shares in a company rather than its assets, the deal can be a securities transaction. Since 2023, Section 15(b)(13) of the Securities Exchange Act exempts "M&A brokers" from registering as broker-dealers, under conditions. Law firm Sidley's summary of the exemption sets them out. Outside those conditions you need a broker-dealer.

Your state. Some states treat the sale of a business as real estate brokerage. California's Business and Professions Code, Section 10131, defines a real estate broker to include anyone who negotiates the sale of "a business opportunity" for a fee. Our guide to becoming a business broker lists the states we know of. Ask your state's real estate commission before your first engagement.

Acquisitions.com is an advisory firm, not a broker-dealer or a lender. Financing comes from third-party lenders and investors. Nothing here is legal advice.

Doing this under the Acquisitions.com name

Advisors can work under our name through the advisor program. They get deal flow from the marketplace scans, AI tools for screening and outreach, and marketing support. That is the modern version of what I describe in the video: a funnel, a calendar, a deal flow platform, and a team around the advisor.

If you are a buyer rather than an advisor, our guide to how to buy a business walks through the nine steps, or you can book a call.