Why exclusivity contracts are a business broking trap!

Vendors across Australia are being tricked into signing exclusivity agreements with business brokers.

If you're looking to sell your business in Victoria, chances are you've come across business brokers who insist on signing an exclusivity agreement upfront. On the surface, it might sound like a standard part of the process — but for many business owners, especially those who’ve had bad experiences with larger, more corporate brokers, exclusivity can quickly turn into a trap.

At Business Sales Victoria (BSV), we’ve heard time and again from vendors who’ve been burnt by brokers who locked them into contracts, promised the world, and delivered very little. So let’s unpack why exclusivity agreements may not always be in your best interest — and what to look out for when choosing the right business broker.

What Is an Exclusivity Contract?

An exclusivity contract is a legal agreement that gives a single business broker the exclusive right to sell your business for a set period — typically 3 to 6 months, sometimes longer. During that time, you can’t list your business with another broker, even if the first one isn’t doing their job.

While some brokers claim this ensures they can “invest properly in the sale,” the truth is: exclusivity often benefits the broker more than it benefits you.

The Problem with Exclusivity

Many business owners we work with have been stuck in exclusive agreements with brokers who promised aggressive marketing campaigns, a long list of qualified buyers, and high-touch support — but who then disappeared once the ink was dry.

The reality? You’re locked in, the broker has no urgency to perform, and your business sits on the market — often with no serious leads in sight.

Worse still, if you decide to find a better broker during that period, you're legally restricted from doing so. In some cases, you may even be required to pay a fee even if you end up selling the business yourself.

This kind of rigid, corporate-style brokering is exactly what turns so many business owners off the process entirely.

A Better Way: The Old-School Approach

At Business Sales Victoria, we believe in doing things differently — with honesty, transparency, and a handshake-style approach that puts the vendor first.

We don't believe in locking vendors into long, binding contracts. Instead, we let our performance do the talking. If we’re not the right fit, or if you’re not happy with how things are going, you’re free to walk away. It’s that simple.

That’s the way business used to be done — and the way it should be done.

What to Look for in a Business Broker

If you’re a business owner looking to sell — here are a few tips what to keep in mind:

• Avoid upfront exclusivity. Look for brokers who are confident enough in their service to work without locking you in.

• Ask about their buyer network. A good broker should have a solid list of genuine buyers and a clear strategy to reach more.

• Demand clear communication. If a broker isn’t regularly updating you or following up with leads, that’s a red flag.

• Look for a relationship, not just a transaction. You want someone who genuinely cares about getting you the right outcome — not just ticking a box.

Selling a Business in Victoria? Talk to a Broker Who Works for You

If you're ready to sell your business and want straightforward, no-nonsense advice from brokers who respect your time, Business Sales Victoria is here to help.

We specialise in helping Victorian business owners — especially those who’ve had enough of pushy sales tactics and corporate coldness — achieve a clean, confident sale with no nasty surprises.

Contact us today for a no-obligation chat. No pressure, no exclusivity, just good old-fashioned service.