Thinking of selling your business but unsure how much do brokers charge to sell a business? Broker fees can vary widely, and many business owners end up paying hidden costs they never expected.
This guide will break down, broker commission structures, success fees, and hidden charges, so you can negotiate a better deal and save thousands.
How Much Do Business Brokers Charge?
Most brokers charge a commission of 8% to 12% of the final sale price, but the total cost depends on the business size, deal complexity, and the broker’s expertise.
Standard Broker Fee Structure
| Business Sale Price | Broker Commission (%) | Estimated Cost |
| Below $1 Million | 10% – 12% | $100K – $120K (for $1M sale) |
| $1M – $5M | 8% – 10% | $80K – $100K (for $1M sale) |
| Above $5M | 5% – 8% | Varies based on deal |
Larger businesses get lower commission rates, but brokers may add extra fees like marketing expenses.
Types of Fees Business Brokers Charge
Brokers typically charge three types of fees:
1. Success Fees (Commission-Based)
- Brokers earn a percentage of the final sale price.
- This motivates them to sell at a higher price, but it also means you lose more money in commission.
Example: If your business sells for $1M, and the broker charges 10%, you’ll pay $100K in commission.
2. Upfront Fees (Retainers & Listing Fees)
- Some brokers charge an upfront fee before listing your business.
- These fees range from $2,000 to $20,000 and cover marketing, business valuation, and buyer sourcing.
Pro Tip: Avoid brokers who ask for high upfront fees without a clear marketing plan.
3. Hidden Fees (Due Diligence, Legal, Marketing Costs)
Many business owners don’t realize brokers may charge for:
âś” Business valuation reports
âś” Buyer outreach & lead generation
âś” Legal paperwork assistance
These fees can add thousands of dollars to the final cost.
Real-World Example: How a Seller Saved $50K on Broker Fees
Case Study: Small Business Sale for $750K
- Original Broker Commission: 10% ($75K)
- Negotiated Rate: 8% ($60K)
- Eliminated Upfront Fees: Saved $10K
- Total Savings: $50K
Lesson: Always negotiate broker fees and understand the full cost breakdown before signing.
How to Negotiate Broker Fees & Save Money
1. Compare Multiple Brokers – Don’t settle for the first offer. Get at least three proposals.
2. Negotiate a Sliding Scale – Offer a higher percentage for higher sale prices to lower your overall cost.
3. Avoid High Upfront Fees – Only pay retainers if they cover valuable services like marketing and valuation.
4. Set a Commission Cap – Ask for a maximum commission limit to prevent excessive costs.
Should You Sell Your Business Without a Broker?
Pros of Selling Without a Broker:
✔No commission fees (Save thousands)
âś” Full control over negotiations
âś” Direct communication with buyers
Cons of Selling Without a Broker:
❌ Harder to find qualified buyers
❌  Time-consuming negotiation process
❌  Higher risk of legal & valuation mistakes
Tip: If your business is under $500K, you might save money by selling without a broker.
See our full guide on selling a business without a broker here.
Final Thoughts
Brokers can help sell your business faster, but their fees can eat into your profits. Understanding commission rates, hidden fees, and negotiation tactics can save you tens of thousands of dollars.
âś” Compare multiple brokers
âś” Negotiate commission rates
âś” Avoid high upfront costs
If you’re selling a business, do your research, ask the right questions, and don’t overpay.
References & Sources:
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