Business Broker Basics

Business brokers charge the seller approximately 10 percent of the final sale price, payable at the close of the deal. This rate can vary depending on the size of the business. Be sure to ask a broker up front if there are any fixed fees involved in the transaction or if you are responsible for any other expenses incurred by the broker.

In general, the more a business is worth, the more leverage the seller has when negotiating the broker's commission and fee. If you're selling a larger business — particularly one worth more than $1 million — you may want to consider using a broker who is a mergers and acquisitions specialist. But be aware that this type of broker may charge a fixed fee apart from the commission.

In addition to helping you negotiate the actual sales transaction, business brokers have a wealth of contacts and resources at their disposal, and they should be able to provide you with additional value by making discreet inquiries to potential buyers. Brokers may also have contacts at larger corporations that may be interested in buying your business, often at a higher price than an independent buyer would be willing to pay.