Buy side fees

searcher profile

June 11, 2022

by a searcher in Chicago, IL, USA

When brokers ask buyers to pay fees, do buyers pay a percentage over and above the negotiated price or are the fees taken from the amount the seller would recieve?

For example if you oay $10,000,000 for a business, would the fee be taken from this amount or would a buyer need to pay a fee on top? E.g 10M x 3% = total price to buyer $10,300,000.

Thank you

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commentor profile
Reply by a professional
from Dartmouth College in Los Angeles, CA, USA
The broker fee is a seller (or potentially target) obligation. If the buyer pays it, it is a reduction to the purchase price.
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