What percent of broker marketed deals don't transact?

January 27, 2026

by an investor from Harvard University - Harvard Business School in Cambridge, MA, USA

Was having a chat with a friend the other day, and it seems like 90% of brokered deals are still in market 6-9 months later. Not sure if anyone has any data or anecdata on this, but curious what people think. Obviously depends a ton on economic cycle, but what % of $500k-3 mm EBITDA businesses that are marketed by a broker never transact or take >1 year (and therefore basically go through another marketing cycle)?

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Reply by an intermediary
from Georgia Institute of Technology in Houston, TX, USA

For those companies and brokers that go directly to market with very little vetting, 80% or so not transacting is realistic. The percentage is much higher for smaller companies as most business owners have no idea what their company is worth and fail to sell for the reasons stated by others. For that reason, most brokers play a volume game. Gotta list 10 to sell 2 to make enough. Larger companies go through M&A advisors who invest the time to scrutinize deeper. Their percentages are higher because they don't accept the ones that they know are not ready. I'm a CEPA and M&A advisor and won't touch a company to sell that I haven't already worked with. I just feel bad for all those business owners, and searchers, that invest a ton of time, effort, and money to try and transact something that will ultimately not happen.

Reply by an intermediary
from Swinburne University of Technology in Melbourne VIC, Australia

^redacted‌, I would have to go with what ^redacted‌ has to say here. In Australia, our experience is that close rates of around 50% in this segment aren’t unusual within a single sales cycle. Outcomes depend heavily on preparation and pricing discipline, supported by the right broker and buyer-management process. Where deals extend, it’s more often due to diligence and financing than a lack of buyer interest. Marketing typically identifies a buyer within 3–6 months, but the overall sales cycle is longer, given risk, deal size, and capital constraints. Results vary far more by business quality and preparation than by market conditions alone.

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