How Much Do Brokers Charge to Sell a Business?
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:
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Access to qualified buyers
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Confidential marketing
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Deal negotiation and due diligence
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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:
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What is your success rate?
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How will you market my business?
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Do you specialize in my industry?
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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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