{
  "title": "M&A Advisor vs Investment Banker vs Business Broker: Who to Hire",
  "url": "https://acquisitions.com/blog/ma-advisor-vs-investment-banker-vs-broker/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-10-22",
  "updated": "2026-10-22",
  "section": "Becoming an advisor",
  "keyword": "M&A advisor vs investment banker vs business broker",
  "short_answer": "A business broker sells Main Street businesses for a seller-paid commission and needs a state licence in some states. An investment banker sells larger companies from inside a FINRA-registered broker-dealer, because a stock sale is a securities transaction. An M&A advisor sits in between, on lower-middle-market deals, for a retainer plus a success fee. Pick by deal size, by who is buying, and by what the structure legally requires.",
  "facts": {
    "Typical deal size": [
      "Main Street, under $2 million (IBBA/M&A Source definition)",
      "Lower middle market, $2 million to $50 million",
      "Middle market and up"
    ],
    "Who they usually work for": [
      "The seller",
      "Seller or buyer",
      "Seller, issuer or board"
    ],
    "Licence or registration": [
      "State real estate licence in some states (California, Florida); M&A broker exemption on stock sales",
      "M&A broker exemption on stock sales, within its conditions; state rules still apply",
      "Works at an SEC-registered, FINRA-member broker-dealer"
    ],
    "How they are paid": [
      "Commission at closing, with a minimum fee",
      "Retainer plus a success fee, often on a Lehman-style scale",
      "Retainer, success fee, minimum fee, extra fees for opinions and financings"
    ],
    "What they do": [
      "List, screen buyers, negotiate, close",
      "Targeted buyer list, CIM, negotiation, structure, lenders",
      "Formal auction, valuation, financing, public markets"
    ],
    "When to pick them": [
      "Owner-run business, individual buyers, SBA financing",
      "Company or PE buyers, structure matters, deal above $2 million",
      "Large company, many bidders, public-company buyers, securities offering"
    ]
  },
  "sources": [
    "https://bschool.pepperdine.edu/newsroom/articles/market-pulse-report-shows-increase-business-transactions-optimism-about-activity.htm",
    "https://california.public.law/codes/ca_bus_and_prof_code_section_10131",
    "http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0475/Sections/0475.01.html",
    "https://www.sec.gov/reportspubs/investor-publications/divisionsmarketregbdguidehtm.html",
    "https://www.finra.org/investors/insights/regulated-by-FINRA",
    "https://www.finra.org/registration-exams-ce/qualification-exams/series79",
    "https://www.sec.gov/divisions/marketreg/mr-noaction/2014/ma-brokers-013114.pdf",
    "https://www.law.cornell.edu/uscode/text/15/78o",
    "https://sidley.com/en/insights/newsupdates/2023/03/us-congress-exempts-certain-merger-and-acquisition-brokers-from-sec-broker-dealer-registration",
    "https://exitpromise.com/lehman-scale/",
    "https://www.bizben.com/blog/how-much-do-brokers-charge-to-sell-a-business/"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}