How Much Do Business Brokers Charge?
Most business brokers are paid a success fee at closing, from the sale proceeds. What varies is the percentage, the minimum, whether anything is charged upfront and what the fee actually buys.
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Success Fees
For small businesses the market commonly quotes a success fee of around ten percent of the price, frequently with a minimum fee so that a small sale is still worth the work. Larger sales are usually on a sliding scale that falls as the price rises. The fee is normally paid at closing, from the proceeds, so you pay it only if the business sells.
Upfront Fees and Retainers
Some firms charge a retainer or a marketing fee upfront, whether or not the business sells. Ask what it pays for, whether it is credited against the success fee, and what happens if you decide not to sell. A free valuation should mean exactly that.
What the Fee Should Buy
A defensible valuation, a confidential marketing package, screening of every buyer, management of the lender, the landlord and due diligence, and someone negotiating on your side throughout. Ask how many businesses like yours the broker has sold, how they find buyers and who handles your file day to day.
Read the Listing Agreement
Look at the term, the fee and the minimum, what counts as a sale, whether the fee is owed if you sell to someone you found yourself, and the tail period after the agreement ends. BreakThru sets its fee out in writing in the listing agreement before you sign anything.
Request a Confidential Business Valuation
Tell us the type of business, the city, how long it has operated, annual revenue, owner benefit or seller's discretionary earnings, EBITDA if you track it, monthly rent and lease expiry, number of employees, how involved you are, why you are selling, your timeline and whether you would consider seller financing. A licensed BreakThru business broker prepares a confidential valuation from comparable sales and replies within one business day. Everything you tell us is confidential, the valuation is free, and nothing is listed or announced unless you decide to sell. Prefer to talk now? Call (786) 914-1017.
Questions Owners Ask
- How much is my business worth?
- Most owner-operated businesses in South Florida sell for a multiple of seller's discretionary earnings: net profit plus the owner's salary, benefits and one-time or personal expenses run through the business. Where the multiple falls depends on the industry, the lease, the staff, the trend in the numbers and how much the business depends on you. A confidential valuation gives you the range for your business and the reasons behind it.
- Will my employees, customers or landlord find out?
- Not from us. The business is marketed without its name or address, buyers sign a non-disclosure agreement and prove their funds before they learn who you are, and showings happen after hours or are presented as something else. The landlord is approached only once there is an accepted offer, because the lease has to be assigned.
- How long does it take to sell a business?
- Six to nine months from listing to closing is common for a well-prepared small business, faster when the price is right and the records are clean, longer for businesses that need a licensed buyer or a franchisor's approval. The escrow period after an accepted offer is usually sixty to ninety days.
Also for Owners
Where Buyers Are Looking
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Guides for Business Owners
- How much is my business worth?
- How long does it take to sell a business?
- How to sell a business confidentially
- What documents do I need to sell my business?
- How are restaurants valued?
- How are service businesses valued?
- Should I offer seller financing?
- What happens to my lease when I sell?
- How does an SBA loan affect the seller?
- Do my employees need to know?
- How to sell a business in Florida
- SDE vs. EBITDA: which one values my business?
- How do I prepare my financials to sell?
- What happens in due diligence?