How Much Do Business Brokers Charge?

Business brokers typically charge the seller approximately 10 percent of the final sale price. As a buyer, you are usually not responsible for any part of that commission. In some cases where the buyer

hires a broker to represent him or her in the buying process, he may be responsible for certain fees. In this case, a buyer may retain a broker to help with the due diligence of the purchase process. Be sure to ask your broker up front who is responsible for their fees and commission.

Brokers can be an invaluable starting point and continuing resource when you set out to buy your own business. They often act as a clearinghouse for owners who want to sell their businesses and frequently specialize in matching the right buyer with the right seller.

Remember, however, that the broker's revenues are intrinsically linked to the final sale price they help negotiate. This means that although they should adhere to a set of ethical standards, they will try to help the seller secure the highest possible price for the business.