Broker fees - Is a 15k retainer and 8% of closing price too high?

by a searcher from Iowa State University of Science and Technology

11 months ago

I have gotten introduced to some smaller brokerages as part of my deal sourcing. However, It seems like the fees and retainers are quite high. I have not worked with a broker before, so I am curious to what people are seeing out there for fees. I was given a quote from one brokerage to be a 15k retainer and 8% of closing price ( without any negotiations). What quotes are other getting?

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intermediary from Naval Postgraduate School

David: I suggest that you contact Martinka Consulting for buy side broker services https://www.martinkaconsulting.com/buying-a-business/

19 hours ago | like reply | 0 likes

intermediary from George Mason University

Very high. We only do selective buy-side work for ongoing clients relationships (company buyers) with a very specific target. Retainer is typically $3K - $5K for a campaign and then a percentage of the EBITDA or recurring revenue (either flat or sliding scale). On the buy-side I don't think you can be a true advisor when your compensation is tied to an increasing purchase price.

23 hours ago | like reply | 0 likes

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