Broker fees

by a searcher

5 months ago

What are the market normal fees for a broker to sell a small business? We have a Plumbing company and we are at around 900k EBITDA and I'm interested to learn the following:

1. What percentage do brokers normally charge on a deal this size?
2. Are there generally any upfront or monthly costs?

I welcome people to write about their experiences. Thank you

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searcher from Douglas College

5% is common. Can go higher depending on the brokerage. They usually have charges for the marketing material they would prepare. It would depend on individual terms if they would charge them upfront or as part of their commission later on.

3 months ago | like reply | 0 likes

searcher from Johns Hopkins University

Most business brokers charge up to 10%, investment banks which specialize in larger transactions charge in the 5% range. Business Brokers take on dozens of clients and send out their listings to a wide range of buyers. Investment Bankers are more focused on their engagements. Happy to chat further if you like.

5 months ago | like reply | 0 likes

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