Wednesday, July 21, 2010

Selling Your Small Business - What Does a Business Broker Charge?



Selling your Small Business knowing the facts about Business Broker Charges -

Most business brokers will charge a commission to sell a business.  The selling fee (commission) is usually 10% of the sale price.  However, did you know, as a rule, business brokers will have a minimum fee on average - in the region of $10,000.  So you would be charged what ever is greater.

In addition a business broker will charge an upfront fee - sometimes called a listing fee - to sell your small business.


It’s normally a non refundable fee and is paid at the time of the business listing.  This fee is typical from $2,000 upwards.

Some business brokers may deduct the listing fee from the sale fee – that’s if they sell the business of course.  Let me give you an example...

...On a $200,000 business sale, listing fee of 2,000 Selling fee will be $20,000.  Commission due to the Business broker will be $22,000.  This will be due at settlement and is normally handled by the lawyer acting for the business owner.

The good news is, there's no need to pay these fees when you have the right information and accurate business valuation tool to sell your small business successfully.

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