In the sale of a business, the buyers and sellers are the principals, meaning they hold the ultimate authority over the transaction. Business brokers, along with their agents, serve as intermediaries under the law, assisting both parties throughout the sale process. Brokers commonly help prepare key documents such as an information memorandum for the seller or an offer-to-purchase form for the buyer.

However, brokers typically do not have power of attorney to sign closing documents; the principals themselves must sign these legally binding papers. Business brokers may list their brokerage as the agent for each principal on the contract, reflecting their role in facilitating the transaction. This structure ensures that while brokers provide expert guidance and handle much of the administrative work, the legal authority to finalize the sale remains with the buyers and sellers.