An investment bank runs a formal, marketed sell-side process, builds the materials, approaches many buyers, and manages a competitive auction, usually for larger deals, in exchange for a retainer plus a success fee. WETYR is an operator-buyer that acquires lower-middle-market businesses directly and confidentially.
Verdict: Hire an investment bank if your business is large enough to justify a full marketed auction (often $10M+ in enterprise value) and you want maximum competitive tension across many buyers. Choose WETYR if your business is in the $1M to $50M revenue range, you want a confidential direct sale without a retainer and a multi-month process, and certainty matters more than an auction.
Side by side
| Factor | WETYR (operator-buyer) | Investment bank |
|---|---|---|
| What they are | A direct buyer | A sell-side advisor running an auction |
| Typical deal size | $1M to $50M revenue | $10M+ enterprise value, often much larger |
| Cost to you | $0 on a direct buy | Retainer plus 1 to 5%+ success fee |
| Process | Direct, confidential | Broad, marketed, competitive |
| Time to close | 30 to 75 days | 6 to 12 months |
| Confidentiality | High | Managed, but many buyers see it |
| Who buys | WETYR | The winning bidder in the auction |
| Best outcome | Certain, clean, private | Maximum price via competition |
When Investment bank is the better choice
An investment bank is the better choice for a larger, highly-desirable business where a competitive auction across strategic and financial buyers will produce a materially higher price than any single buyer. If your enterprise value is well into eight figures, the bank fee is a small percentage of the extra value a good process creates, and their access to a broad buyer universe is worth paying for. For scale deals, a marketed process usually beats a direct sale on headline number.
When WETYR is the better choice
WETYR is the better choice for lower-middle-market businesses where a full investment-bank auction is overkill, too slow, and too expensive relative to the deal size. Many owners in the $1M to $50M revenue range do not need, and cannot cost-justify, a retainer and a year-long marketed process. A direct, confidential sale to an operator-buyer gives you a real offer fast, keeps it private, and avoids putting your business through a broad auction it is not big enough to benefit from.
What it costs
Investment banks typically charge a monthly retainer plus a success fee that can range from roughly 1 to 5 percent or more depending on deal size, often on a scale that rises for smaller deals. On a lower-middle-market business, those fees are a meaningful share of proceeds. WETYR charges the seller nothing on a direct purchase.
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Tell us a little about your business. We reply with an indicative value range and whether we are a direct fit, within one business day. No obligation, no listing, nothing public.
Questions people ask about this comparison
Do I need an investment bank to sell my business?
Only if your business is large enough to benefit from a full marketed auction, usually $10M+ in enterprise value. Below that, the retainer and success fee are hard to justify, and a direct sale to an operator-buyer is often the cleaner path.
What does an investment bank charge to sell a business?
Typically a monthly retainer plus a success fee, often 1 to 5 percent or more of the sale price on a scale that rises for smaller deals. There may also be a minimum fee that makes small deals uneconomic for them.
What is the difference between an investment bank and a business broker?
Roughly, deal size and process. Brokers handle smaller, Main Street to lower-middle-market deals; investment banks run formal auctions for larger businesses. Both are intermediaries who find a third-party buyer and charge a success fee.
Is my business too small for an investment bank?
If your enterprise value is under about $5M to $10M, most investment banks will pass or charge a minimum fee that eats your proceeds. That is the exact range where a direct operator-buyer is the more sensible option.
Get a confidential read on your options
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