How Much Do Brokers Charge to Sell a Business?

Selling a business is a huge milestone. Whether you’ve spent years building it from scratch or recently acquired it to flip for a profit, one question always comes up—how much do brokers charge to sell a business? It’s a critical piece of the puzzle that can significantly impact your final profit.

Many business owners jump into the selling process without fully understanding the financial dynamics involved. But knowing the real cost of hiring a business broker isn’t just about fees—it’s about clarity, control, and maximizing the value of your hard work. From upfront retainers to success-based commissions, every broker has a unique pricing structure, and those costs can either help or hurt your bottom line.

In this in-depth guide, we’re going to walk you through everything you need to know. We’ll explore different broker fee models, what influences those charges, what’s considered fair in today’s market, and how you can negotiate better terms when it’s your time to sell.

What Is a Business Broker?

Role of a Business Broker

A business broker is like a real estate agent—but instead of selling houses, they sell businesses. Their job is to:

Evaluate your business to determine its market value
Create professional marketing materials to attract buyers
Maintain confidentiality throughout the process
Market your business across multiple channels
Screen and qualify potential buyers
Assist with negotiations and legal paperwork
Guide you through due diligence to closing

They’re essentially the middleman who ensures both parties walk away satisfied.

When Should You Hire One?

You should consider hiring a broker if:

You’re unfamiliar with the sales process
You don’t want to reveal your identity while selling
You want a higher valuation and better marketing reach
You need help finding qualified buyers quickly
You’re too busy to manage the process yourself

Now that we know what they do, let’s talk about what they cost.

Typical Broker Fees in 2025

The Standard Commission Structure

Most business brokers charge a success fee based on the final sale price of the business. This is also known as a commission. In 2025, here’s what you can expect:

10% on businesses sold for under $1 million
8% to 10% for businesses between $1 million and $5 million
Negotiated rates for deals over $5 million (typically 4% to 8%)

This means if you sell a business for $800,000, the broker may earn around $80,000 in commission.

The Double Lehman Formula

For businesses over $2 million, brokers often use a tiered model called the Double Lehman Formula:

10% on the first $1 million
8% on the second million
6% on the third million
4% on the fourth million
2% on any amount over $4 million

This model helps balance commission rates fairly across larger transactions.

Flat Fees and Hybrid Models

Some brokers offer flat fees or hybrid models (a mix of flat fees + success commission). These are more common in:

Online broker platforms
Franchise resales
High-volume, lower-value transactions

Flat fees can range from $5,000 to $25,000 depending on the size and complexity of the business.

Upfront Fees and Retainers

Many brokers charge a retainer fee before beginning the selling process. This upfront fee can be:

$2,000 to $5,000 for small businesses
$10,000 or more for mid-sized businesses

This covers their time and effort in preparing marketing materials, valuing your business, and listing it on buyer networks.

Minimum Commission Clauses

Some contracts include minimum commission clauses, where you must pay a set fee even if the business sells for less than expected. For instance:

Minimum $25,000 commission regardless of sale value
Ensures broker compensation even for smaller deals

Always check this clause carefully.

Factors That Influence Broker Fees

Business Size and Sale Price

Higher-value businesses typically receive slightly lower commission rates, but brokers still earn more in actual dollars. For example:

A $500,000 business at 10% = $50,000 commission
A $5 million business at 6% = $300,000 commission

Industry Type

Some industries require more effort to sell, especially those with complex licensing, seasonal fluctuations, or specialized buyer pools. These may include:

Medical practices
Construction firms
Tech startups
Restaurants and hospitality businesses

Brokers may charge more in these cases to cover the extra work.

Location of the Business

Selling a business in a major city like New York or Los Angeles is very different from selling one in a rural area. Urban brokers often charge higher rates due to higher operational costs and access to more affluent buyers.

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Urgency and Timeline

If you want to sell quickly, be prepared to pay more. Brokers may prioritize your listing or put in extra resources to get fast results. However, rushing can also affect the sale price negatively.

Marketing Costs

Some brokers include marketing costs in their retainer fee; others charge separately. These may include:

Professional photography
Custom brochures and videos
Paid advertising on marketplaces
Buyer outreach campaigns

These extra services can raise the overall cost.

Latest Trends in Broker Fees (2025 Update)

Rise of Online Marketplaces

Platforms like BizBuySell, Empire Flippers, and Flippa are changing how businesses are sold. In 2025, these platforms offer:

Lower commission rates (often 5% to 8%)
Flat listing fees (starting from $199)
DIY selling tools with optional broker assistance

While affordable, these often require more effort from the seller and may lack personal guidance.

Increased Transparency

Buyers and sellers now demand transparency. Reputable brokers provide:

Detailed breakdown of fees upfront
Clear contracts with no hidden clauses
Performance guarantees or refund clauses for unsold listings

Specialized Brokers

More brokers are niching down in 2025. For instance:

Brokers who only sell eCommerce businesses
Brokers who work with medical practices or law firms
Brokers specializing in SaaS companies

Niche brokers often charge more but bring deeper expertise and better buyer pools.

Subscription-Based Models

A new trend is brokers offering subscription-based pricing:

Monthly fee of $1,000 to $2,500
Includes ongoing marketing and advisory support
Flexible, cancel-anytime plans

This works well for business owners who want a slower, more controlled sale.

Hidden Costs to Watch Out For

Legal and Accounting Fees

In addition to broker fees, sellers often pay:

$2,000 to $10,000 in legal fees
$1,000 to $5,000 in accounting support for due diligence

Make sure you budget for these.

Valuation Reports

Some brokers charge separately for a professional valuation, which may cost:

$500 to $5,000 depending on complexity
Credible valuations can help attract serious buyers

Post-Sale Consulting Fees

In some cases, brokers may offer or require post-sale consulting services, especially if the buyer requests seller support. These may be:

$150 to $500 per hour
Packaged deals like “30-day transition support” for $5,000+

How to Choose the Right Broker

Ask the Right Questions

Before signing with any broker, ask:

How many businesses like mine have you sold?
What is your average time to close a deal?
What is your commission structure and what’s included?
Do you charge upfront or retainer fees?
How will you market my business?

Review Their Listings and Track Record

Look at the types of businesses they’ve sold before. Read testimonials or client reviews. Check if they’re members of industry associations like the IBBA (International Business Brokers Association).

Understand the Contract

Never sign without fully reading the contract. Look for:

Exclusivity period (common is 6-12 months)
Cancellation policy
Minimum commission clause
Fee structure and payment timeline

If unsure, have a lawyer review it.

Don’t Always Go for the Cheapest Option

A cheaper broker may seem appealing but could lack experience or cut corners. A skilled broker can often get you a higher sale price, making their commission worth it.

Can You Negotiate Broker Fees?

Yes! Here are some ways to reduce your costs:

Offer a higher commission for a faster sale (performance-based)
Request a lower commission if your business is highly marketable
Ask for a tiered rate (e.g., 10% on first $1M, 8% after)
Bundle services to reduce extra fees (marketing + valuation)
Request a reduced retainer or upfront cost

Many brokers are willing to negotiate—especially in today’s competitive market.

DIY vs Broker: Is It Worth Paying?

Selling your business on your own is possible but comes with challenges:

Pros of DIY Selling

No commission fees
Full control over the process
Can move at your own pace

Cons of DIY Selling

Limited buyer reach
No experience with legal documents and due diligence
Time-consuming and emotionally draining
Risk of underpricing or delays

A good broker brings experience, a strong network, and peace of mind.

Final Thoughts

Deciding to sell your business is one of the most important financial moments in your life. It’s not just about getting a deal done—it’s about getting the right deal. While the cost of hiring a broker can seem steep, their expertise often leads to faster sales, higher offers, and fewer headaches.So, when you ask yourself how much do brokers charge to sell a business, the real answer goes beyond numbers. It’s about value. And if chosen wisely, a broker can more than pay for themselves through better outcomes, smarter deals, and a smoother experience.Take your time, compare options, and always read the fine print. And remember—how much do brokers charge to sell a business may seem like a simple question, but the answer depends on the choices you make. Choose wisely.

FAQs

What is the average commission brokers charge to sell a business?

The average commission is typically around 10% of the final sale price for small to mid-sized businesses. Larger deals may have a lower percentage, depending on the structure.

Do brokers charge upfront fees?

Yes, many brokers charge a retainer or upfront fee, usually between $2,000 and $5,000, to cover initial valuation and marketing efforts.

Can I negotiate a broker’s commission?

Absolutely. Many brokers are open to negotiation, especially if your business is in high demand or expected to sell quickly.

Are there any hidden costs when using a broker?

Yes, there can be additional costs like legal fees, accounting support, marketing expenses, or post-sale consulting, depending on your agreement.

Is it worth hiring a broker to sell my business?

Yes, in most cases. A good broker can attract serious buyers, get better offers, and handle complex parts of the process, making the fee worthwhile.