Business broker vs. M&A advisor vs. investment banker
Three kinds of intermediaries sell businesses—but they serve different deal sizes and work very differently. Here’s how to choose the right one.
The short version
It comes down to size and process
Business brokers handle Main Street businesses, investment bankers handle large corporate deals, and M&A advisors sit in the middle—the lower middle market. Waddell M&A works in that middle band, bringing investment-bank-style process to owner-operated companies.
| Business Broker | M&A Advisor | Investment Banker | |
|---|---|---|---|
| Typical deal size | Under ~$2M | ~$2M–$20M+ | $100M+ |
| Business type | Main Street (shops, restaurants, small service) | Established lower middle market companies | Large corporations, public companies |
| Process | Listing-driven, often public | Confidential, targeted buyer outreach | Highly structured, institutional |
| Valuation basis | SDE multiples | SDE / EBITDA multiples | EBITDA, DCF, comparables |
| Buyer pool | Individuals, owner-operators | PE, strategics, searchers, operators | Institutions, corporates, PE at scale |
| Fees | Success fee (often ~10%) | Success fee, sometimes small retainer | Retainer + success fee |
Categories overlap and titles aren’t regulated consistently—what matters is the advisor’s process, deal-size experience, and buyer network for a business like yours.
Which do you need?
Match the advisor to your business
- Under ~$2M and Main Street? A business broker is usually the right fit.
- $2M–$20M+ and established? An M&A advisor gives you confidential, competitive process and the right buyers.
- $100M+ or public-company scale? An investment bank is built for that.
Where Waddell M&A fits
Lower middle market, done right
We’re a licensed business brokerage and M&A advisory firm focused on the lower middle market—$2M–$20M+ in revenue. You get the confidential, competitive process of a much larger firm, with advisors who actually understand owner-operated businesses and your specific industry.
Keep exploring
Start here
Not sure which fits your business?
Tell us about your company and we’ll give you a straight answer—even if the right answer isn’t us.