How much do business brokers charge to sell a business?
Business brokers typically charge a commission on the final sale price of your business. In addition to commission-based fees, brokers may employ different fee structures. Many use success fees—meaning that you only pay once the business is sold—or contingency fees that also depend on a successful transaction. There can also be non-contingency fees, such as retainers or service fees, which are charged upfront regardless of the outcome. For example, retainer fees may range from $2,000 to $10,000 depending on the broker and business size, and there might be separate marketing or advertising fees involved as well.
The actual cost of using a business broker can therefore vary significantly. It’s essential to review all fee components carefully and consider negotiating terms to ensure that the fee structure aligns with your specific goals and budget. When evaluating a broker, also consider the level of support they offer—especially if you require guidance through a complex process. For example, at Iconic, our dedicated team supports you every step of the way through our proprietary Iconic Rail™ tracking system and a comprehensive 5-step selling process, ensuring full transparency and the confidence to navigate the selling process effectively. To learn more about our approach, please visit The Iconic Way.
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Business size can significantly influence fee structures – for instance, brokers tend to use standard commission rates for “Main Street” businesses (those with revenues under $1 million), while companies in the lower middle market ($1–50 million) may see varied fee arrangements, and those with over $5 million in revenue might even encounter flat-rate or alternative structures (source).
Payment terms typically differ: retainer fees are usually collected upfront, whereas commission fees are generally paid only at closing once the sale is successfully completed (source).
Beyond the standard fees, many brokers also impose separate marketing or advertising fees to cover promotional costs during the listing period, which can add to the overall expense of selling your business (source).
