As an experienced business broker, I’m here to help you understand how much commission a business broker typically charges in order to sell a business. This article will provide you with an in-depth explanation of the various fees and commissions that business brokers typically charge as well as some tips on how to negotiate the best possible commission for yourself.

How Much Does a Business Broker Charge to Sell a Business?

Business brokers typically charge a commission between 10 to 20 percent of the total sale price of the business. However, in some cases, the commission may range from 4-6% on the total purchase price of the business. This commission is usually paid at escrow to the brokerage that listed the business for sale, representing a seller in marketing the offering and negotiating on their behalf.

For a small business, the broker commission is typically 10% of the sale price of the business. The upfront fees required to value, market and negotiate a sale may range from $10,000 to $25,000 and some brokers may charge a flat fee instead of a commission. It is important to negotiate the commission fees beforehand to ensure that you are getting the best deal.

Tips for Negotiating the Best Possible Commission

  • Choose the right broker: Make sure to select a broker who has a lot of experience in the industry and is well-versed in selling businesses of your size.
  • Research the commission rate: Do some research to determine the average commission rate for a business broker in your industry. You can also ask for references from other business owners who have used the services of a broker in the past.
  • Be prepared to negotiate: Be prepared to negotiate the commission rate with the broker. Be honest about your budget and your expectations and be sure to ask for a detailed breakdown of the fees.
  • Get a written agreement: Make sure to get a written agreement from the broker outlining the commission rate as well as any other fees or expenses. This will ensure that you are both on the same page.

Selling a business is a complex process, and having the right business broker by your side can make the process much smoother. It is important to understand the commission fees and negotiate the best possible commission rate for yourself. is a great resource for answers to your questions about business brokers and about selling a business in Atlanta.

What is the usual charge for a broker’s services?

The usual brokerage fee for a real estate transaction is typically between 5% to 6% of the sale price, which is then split between the seller’s agent and the buyer’s representative.

What steps do you take to negotiate an agreement between two businesses?

Be Ready to Walk Away.

1. Be Ready. Make sure you understand the other person’s point of view.
2. Be an Engaged Listener. People appreciate feeling understood.
3. Ask for More.
4. Analyze Every Possibility.
5. Give In for the Right Reasons.
6. Don’t Just Focus on the Money.
7. Think About Timing.
8. Have Your Own Style of Negotiating.
9. Be Ready to Walk Away if Necessary.

Do real estate agents receive a fee for their services?

Most real estate agents earn income through a commission, which is usually a certain percentage of the property’s selling price. (Flat fees are less frequently used.) The commission is paid to the broker that the agents are employed under.

How much will it cost to acquire the services of a broker?

Most brokers generally charge a flat fee of 8% to 12% of the total value of a business that is under $1 million. For businesses valued between $1 million and $5 million, the fee is usually lower, following a “Double Lehman” or “Modern Lehman” formula, which is typically 10% to 12% on the first million, with a slightly lower rate for the rest.