Business Broker Commissions & Fees
One of the first questions a business owner looking to sell their business will ask our business brokers is “How much do you charge?”, or “What are your commission rates?”
Typical commission rates
Estia business brokers charge between 2.5% to 5% of the sale price in commission. The rate of commission varies depending on the selling price of the business and special agreements between you and your broker.
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Business Brokers Commission & Other Fees
Aside from a commission fee, most business brokers generally charge fees relating to administration and marketing.
It is important to determine not only the commission rate, but the services offered by the broker to determine a fair commission rate. This depends on the type of activities the broker will undertake while selling your business.
Our business brokers will be working for you from the very start; marketing the business for sale, talking to and meeting with prospective purchasers, and liaising with solicitors.
While most business brokers charge an upfront fee of thousands of dollars, we offer a more reasonable and fair approach for selling your business.
Using a Broker Vs Selling Privately
For some business owners, the thought of paying commission makes it tempting to attempt sell their business without a broker.
While this reasoning is understandable, this view overlooks the fact that, while hiring a broker might be slightly higher in cost, it may be the most efficient way of selling the business and attaining a higher sale price. This is because of the sheer buyer reach and connections a business broker has compared to a private seller.
As a vendor, you need to consider your sale from all points of view. If you do not hire a broker, your buyer reach is lower. Although you will be paying the broker a commission fee, this fee is paid in exchange for successfully selling your business for the best possible price and within a realistic time frame.
There are many other factors to consider in using a business broker.