What is the average commission for a business broker

W ondering how much business brokers charge? Like many things when it comes to selling a business - there's no simple answer. Nearly every business and every situation is unique. But if you're in the planning stages of selling your business, you need a general idea of what it's going to cost. And that's exactly what this article will give you.

A commission is a percentage fee on the sale price of your business. This fee is negotiated before you list with a broker and it's paid at closing. Business Brokers are the professionals who focus on the buying and selling of businesses and franchises.

You are paying for their expert knowledge, skills and contacts in the business sales environment. In order to engage their services, you sign a contract to sell your business.

Their payment is in terms of a commission rate that is paid once settlement has occurred. Usually, a broker has an exclusive agreement with the seller, so they are entitled to a commission if the business is sold under the contracted period typically months in a business sale. You can easily find a business broker on Bsale.

Remember: Selecting a broker shouldn't just be based on the commission they charge. A broker may offer you a lower rate, but be unable to secure you a buyer. This may sound attractive but there is a reason the fees are so low. These professionals are not trained in business brokerage, and they do not have adequate resources or a network to get a business transaction closed properly.

Not working with a professional business broker may also cause issues with keeping the confidentiality of a business sale.

It is best to work with a business intermediary who has the expert knowledge and training to sell a company to ensure the business is not damaged during the course of the sale process.

To learn more about how a Colorado business broker can support business owners with the sale of their company, schedule a consultation with one of our brokers today or visit the sell a business section of our website. Schedule a Consultation. After acquiring and selling many of his own businesses, Al was inspired to help other small business owners navigate the challenges involved in selling their companies.

His focus on running seamless transactions, constant honest communication, and maintaining relationships with clients has earned Al multiple awards for Transworld through the Denver Business Journal, International Business Brokers Association, Colorado Business Magazine, Transworld Business Advisors, and Inc. In any case, the marketing fees associated with selling a business are generally less expensive than selling real estate as there are no open homes, flyer drop campaigns nor expensive videography and photography required when selling a business.

Business brokers are specialists that regularly connect sellers to buyers and generally have access to a list of buyers that are seeking a specific business for sale. You are paying for their expertise, experience, knowledge, and connections to help you sell your business successfully.

Read: How to find the best business broker when selling. A business broker will help perform some of the functions above and will refer you to the right professionals when required, saving you the trouble of having to figure everything out yourself.