Broker Compensation

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February 02, 2024

by a searcher from Pennsylvania State University in Philadelphia, PA, USA

What types of compensation you have seen owners paying business brokers for services? Monthly fees? Flat fee? Percentage of sale? Curious to better understand this expense so I can better educate off-market sellers

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Reply by a searcher
from University of Richmond in New York, NY, USA
It varies broker to broker, but there's typically an upfront retainer (either one time at process inception or monthly ongoing throughout the process) and a success fee at closing that's usually either a percentage of TEV/sale proceeds or fixed pre-negotiated value.
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