Business Broker Commissions

by a searcher from University of Pennsylvania - The Wharton School

2 years ago

Hi Everyone,

Does anyone know what a typical broker commission is for a seller looking to sell a $3-$10M business? Looking around online I'm finding all kinds of estimates. I'd love to know if there's a typical way brokers structure this (flat fee, % of sale, % of sale above certain number) and ballpark numbers for what they charge. 

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searcher from University of California, Berkeley - Haas School of Business

All over the board. Lehman is common with starting point heavily market and size dependent. But generally 10-12% for first million and step down by 1% per million then flattens. This is consistent with boutique IBs. Now will there be brokers dropping fees, sure. Some deals are hairier than others too. So not a one size fit all. Launching and running a good process require a lot of experience, knowledge, network and time. Find the right agent/partner and strike a fair deal.

2 years ago | like reply | 0 likes

searcher from University of Queensland

I've seen 8% on sale price + upfront $3k payment + $300/mth retainer until settlement - these seemed to be max $1M businesses. That's for businesses that broker felt would sell easily

2 years ago | like reply | 0 likes

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