How Much Do Brokers Charge to Sell a Business?

Last Updated: April 24, 2025By

Introduction

Thinking of selling your business? A business broker can help you find buyers, negotiate deals, and handle complex paperwork—but at a price. So the big question is:
How much do brokers charge to sell a business?

In general, business brokers charge a commission-based fee ranging from 8% to 12% of the final sale price, with some variation depending on the size and complexity of the business.


💸 Typical Broker Commission Rates

Sale Price of Business Typical Broker Fee
Under $1 million 10% – 12%
$1 million – $5 million 8% – 10%
$5 million and above 2% – 5% (sliding scale)

📌 Note: These are averages—rates can vary based on location, broker experience, and industry.


🧾 How Do Brokers Structure Their Fees?

Brokers typically charge in the following ways:

1. Commission Only

This is the most common structure. The broker earns a percentage of the final selling price only if the sale goes through.

2. Retainer or Upfront Fee

Some brokers ask for a non-refundable upfront fee, usually $2,000–$5,000, especially for higher-value businesses.

3. Success Fee + Retainer

This is a mix of both: a small upfront fee plus a commission upon a successful sale.


⚖️ Why Broker Fees Are Worth It

A good broker offers value that justifies their fee:

  • Access to qualified buyers

  • Confidential marketing

  • Deal negotiation and due diligence

  • Time savings and expert guidance

Think of it as paying for peace of mind and a higher selling price.


🛠 Pro Tip: Don’t Just Pick the Cheapest

Low fees can mean low effort. Ask these questions before hiring:

  • What is your success rate?

  • How will you market my business?

  • Do you specialize in my industry?

  • What services are included in your fee?


Conclusion

So, how much do brokers charge to sell a business?
Expect to pay 8%–12% of the final sale price, or more for smaller businesses. Some brokers also charge upfront or retainer fees.

Before choosing a broker, weigh their experience, track record, and services offered—not just the price tag.

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