I have a friend looking at a business to purchase, and has been approached by a buy-side agent who would like to represent him. The agent has offered no retainer up front (for other businesses if this one falls through), and a structure of ~6.5% on the first $5M, 5% on value between $5M-$10M, 4.8% from $15M-$20M, and 4.6% $20M+. This seems high to me, but would welcome input here.
Buy-side broker commission structure
by a searcher from University of Pennsylvania - The Wharton School
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Lot of sketchy brokers out their with horrible contract terms trying to take advantage of the novices.
I recommend that searchers do whatever it takes, from the get-go, to meet sellers and potential sellers. Including outsourcing admin, marketing, searching, whatever, to people/organizations that can help the searcher achieve done deals sooner. But, beware the details.