Business Brokers Commission Calculator

This is an estimate based on the potential highest commission payable. Commissions are negotiable.

What commission do business brokers normally charge?

Business brokers usually charge a commission between 5-10% of the final business selling price as well as an upfront fee for advertising or marketing.

Fee structure varies between brokerages and is determined by the value of the business being sold as well as the difficulty of selling the business.

Business brokers usually charge a higher commission if they anticipate the business’s final selling price to be a low amount. Many brokers also have a minimum commission payable.

Business brokers are usually open to negotiating a lower commission fee If the selling price is at a high price point. The successful sale of a business valued at over a seven figures could earn six figures in commission for the business brokerage.

Commission payments are usually paid to the business broker after settlement.

It is not uncommon for sellers to opt in to an exclusive agreement with the business broker which entitles the broker to commission if the business is sold during the contracted period – normally 3-6 months.

Are marketing costs included in the brokers’ commissions?

Marketing costs can be levied upfront as a marketing fee or included in the commission.

Some may not charge a marketing fee as they have a buyers list with someone interested in acquiring a business similar to yours.

The main expenses involved in marketing a business for sale would be listing it on business for sale platform.

In any case, the marketing fees associated with selling a business are generally less expensive than selling real estate as there are no open homes, flyer drop campaigns nor expensive videography and photography required when selling a business.

What are the benefits of using a business broker?

Business brokers are specialists that regularly connect sellers to buyers and generally have access to a list of buyers that are seeking a specific business for sale.

You are paying for their expertise, experience, knowledge, and connections to help you sell your business successfully.

If you don’t understand the process of selling a business it is probably best to seek professional help as the process can be quite daunting.

How do business brokers earn their commission?

You have to organise everything without a business broker, including:

  • Organising the valuation of the business
  • Preparing a document outlining the business to interested buyers
  • Creating marketing material and listing the business on listing platforms
  • Screening potential buyers to determine the genuine ones which have their finances in order to buy your business
  • Negotiating with the interested buyers
  • Closing and finalising the sale of your business

A business broker will perform the functions above and will refer you to the right professionals when required, saving you the trouble of having to figure everything out yourself.

It is always best to speak to professionals when selling your business. As a general rule, speak to a solicitor for advice on legal and contract matters and an accountant for advice relating to tax implications associated with selling your business.