Navigating Business Broker Fees for a Smooth Sale

Ready to sell your business? A business broker can help you attract buyers and close the deal, but their fees can be a surprise if you’re not prepared. This guide explains business broker fees, how they’re structured, and whether they’re worth it, so you can confidently plan the sale of your business. What Are Business Broker Fees? Business broker fees cover services like valuing your business, marketing it, negotiating with buyers, and managing the transaction. These fees pay for the broker’s expertise and effort to ensure a successful sale. Are Business Brokers Paid a Commission? Yes, most brokers earn a commission, typically 8-12% of the sale price. For example, a $1 million sale at 10% results in a $100,000 fee. This structure motivates brokers to maximize your sale price. How Are Fees Structured? Fees vary by broker and deal. Common structures include: 1. Commission-Based Fees Commissions of 8-12% are standard, encouraging brokers to secure the best deal. 2. The Lehman Sca...