Home › How Much Does a Business Broker Charge to Sell Your Business? (2026)

How Much Does a Business Broker Charge to Sell Your Business? (2026)

Quick Answer

A business broker charges to sell your business through a success commission, typically 8 to 12 percent of the sale price for businesses under about $1 million (paid by the seller at closing), with the smallest deals sometimes 12 to 15 percent or, effectively, whatever the minimum fee is, commonly $15,000 to $50,000. For larger lower-middle-market businesses (roughly $1M to $25M), brokers and M&A advisors more often use a Lehman or modified-Lehman tiered scale that decreases as the deal grows (e.g., 10% on the first $1M, 8% on the second, 6% on the third), often plus a monthly retainer of $2,500 to $10,000 that is credited against the success fee. There’s also usually a tail provision keeping the broker owed a fee for 12 to 24 months after the engagement ends if you close with a buyer the broker introduced. The alternative that costs the seller nothing: the buyer-paid sell-side advisor model, where the buyer pays the advisory fee at closing, which works for businesses with $1M+ EBITDA whose realistic buyers (strategic acquirers, PE-backed platforms, family offices) routinely pay advisor fees.

A business broker charges a percentage of your sale price, and on a typical small-business sale that’s the single biggest cost you’ll incur. This page breaks down exactly what brokers charge, by deal size, by structure, plus the fine print (minimums, retainers, tails) that affects the real number, and the one alternative that takes the seller’s advisory cost to zero.

We are CT Acquisitions, a buy-side M&A advisory firm. With our model, sellers pay no advisory fee, the buyer pays at closing. For more detail, see our broker cost guide, average broker commission, who pays the broker fee, and the buyer-paid broker alternative.

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What this guide covers

Under ~$1M: typically 8-12% of sale price (smallest deals 12-15%, or whatever the $15K-$50K minimum works out to)
~$1M-$25M: often a Lehman/modified-Lehman tiered scale plus a $2,500-$10,000 monthly retainer credited against the success fee
Plus: a tail provision (12-24 months after the engagement) and possibly separately-billed expenses
Watch the ‘transaction value’ definition: does the commission apply to cash, or also to assumed debt, earnouts, rollover equity, consulting payments?
The buyer-paid alternative: the buyer pays the advisory fee, so the seller pays nothing, works for $1M+ EBITDA businesses
Always confirm the exact structure in writing before signing, percentage, minimum, retainer, tail, transaction-value definition, expenses

What a business broker charges, by deal size

Sale price	Typical charge	What dominates the number
Under $250K	~12-15%+ effective	The minimum fee (often $15K-$25K), not the percentage
$250K-$1M	8-12% of sale price	The flat percentage
$1M-$5M	~6-10% blended (flat or modified-Lehman scale), sometimes plus a retainer	The scale; the retainer if there is one
$5M-$25M	~3-7% blended (modified-Lehman) plus a monthly retainer credited against success fee	The scale and the retainer mechanics
$25M+	~1-4% blended plus a larger retainer (investment-bank territory)	The lower-percentage scale

The components of what a broker charges

Success commission. The main charge, a percentage of the sale price (flat or tiered), paid at closing from the seller’s proceeds. This is 8-12% for most small businesses, lower (blended) for larger ones.
Minimum fee. Commonly $15,000-$50,000. On a small deal, this is often the actual charge, a $200K sale with a $25K minimum is a 12.5% commission regardless of what the headline percentage says.
Retainer (engagement fee). Lower-middle-market M&A advisors often charge a monthly retainer ($2,500-$10,000) during the engagement, usually credited against the eventual success fee. If the deal closes, you net it out; if it doesn’t, you’ve paid the retainers and gotten no sale. Confirm whether it’s creditable.
Expenses. Out-of-pocket costs, marketing, data room, travel, may be billed separately on top of the commission. Often yes; confirm.
Tail fee. Not a separate upfront charge, but a continuing obligation: after the engagement ends, the broker is owed the commission for some period (commonly 12-24 months) if you close with a buyer they introduced during the engagement.

The ‘transaction value’ question (this matters)

The commission percentage applies to a defined number, and the definition affects how much you pay. Does the commission apply to:

The cash purchase price only? (Best for the seller.)
Plus assumed debt? (Common; increases the base.)
Plus the maximum possible earnout? (Aggressive; means paying commission on money you may never receive.)
Plus rollover equity? (You’re paying cash commission on equity you didn’t get in cash.)
Plus consulting/employment payments to you post-close? (Should usually be excluded, that’s compensation for future work, not sale proceeds.)

Negotiate this. The narrower the ‘transaction value’ definition, the less you pay. A common reasonable position: commission on cash consideration plus assumed debt, with earnouts commissioned only when actually received, and consulting payments excluded.

The alternative: pay nothing

For businesses with $1M+ EBITDA, the realistic buyer pool, strategic acquirers, PE-backed roll-up platforms, family offices, routinely pays sell-side advisor fees as a normal transaction cost; they prefer working with advisors because it’s faster, more confidential, and reaches better-fit deals than chasing public listings. A sell-side advisor whose fee is structured to be paid by the buyer at closing means the seller pays nothing in advisory fees, while still getting professional representation (positioning, buyer sourcing, process management, negotiation). This isn’t a discount; it’s a structural difference in who pays. It doesn’t work well for very small businesses sold to individual SBA-financed buyers (who can’t absorb advisor fees), but for the lower middle market and above, it’s the way to take the seller’s advisory cost to zero. See our broker alternative guide.

How to make sure you’re not overpaying

Get the full structure in writing before signing: percentage (or scale tiers), minimum fee, retainer (and whether it’s creditable/refundable), tail period and which buyers count, ‘transaction value’ definition, and whether expenses are billed separately.
For a $1M+ EBITDA business, seriously consider the buyer-paid model, it’s the structural way to pay zero in advisory fees.
Negotiate the structure, not just the percentage, smaller-business brokers tend to be rigid on rates but more flexible on tail length, minimum, and transaction-value definition; lower-middle-market advisors are more flexible across the board.
If you have a known buyer, consider going direct with just a transactional attorney, no commission at all, though you give up competitive-process leverage.
Don’t choose on cost alone, an advisor who delivers a higher price, better terms, and a faster close can cost less in absolute dollars than a cheaper one who doesn’t.

How we know this: the ranges, timelines, and patterns on this page reflect the transactions we work on and the buyer mandates in our network of 100+ active capital partners. They are informed starting points, not guarantees, your actual outcome depends on the specifics. For a sector-adjusted estimate, use our free 90-second valuation tool.

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Frequently asked questions

How much does a business broker charge to sell a business?

Typically 8 to 12 percent of the sale price for businesses under about $1 million, paid by the seller at closing, with the smallest deals sometimes 12 to 15 percent (or, effectively, whatever the minimum fee works out to, commonly $15,000 to $50,000). For larger lower-middle-market businesses (~$1M-$25M), brokers and M&A advisors more often use a Lehman or modified-Lehman tiered scale (decreasing percentage as the deal grows) plus a monthly retainer of $2,500-$10,000 credited against the success fee. There’s also usually a tail provision keeping the broker owed a fee for 12-24 months after the engagement ends if you close with an introduced buyer.

Do business brokers charge upfront fees?

Smaller-business brokers usually don’t, they work on a pure success commission paid at closing. Lower-middle-market M&A advisors more often charge a monthly retainer ($2,500-$10,000) during the engagement, but it’s usually credited against the eventual success fee, so if the deal closes you net it out. If the deal doesn’t close, you’ve paid the retainers for nothing. Confirm whether any retainer is creditable (and ideally partly refundable). Out-of-pocket expenses (marketing, data room, travel) may also be billed separately on top of the commission, confirm that too.

What’s a typical minimum business broker fee?

Commonly $15,000 to $50,000, regardless of sale price. On a small deal, the minimum is often the actual charge, a $200K sale with a $25K minimum is effectively a 12.5% commission, even if the headline percentage is 10%. Always ask what the minimum is; it’s the binding number on the smallest deals. If your business is small enough that the minimum dominates, that’s also a signal to consider whether a traditional broker is even the right path, or whether direct-to-known-buyer makes more sense.

Can I sell my business without paying a broker?

Yes, in two ways. Direct-to-known-buyer: if there’s already a logical buyer (a competitor, supplier, partner, key employee), you negotiate directly with just a transactional attorney, no broker commission at all (though you give up the competitive-process leverage a broker or advisor provides). Buyer-paid sell-side advisor: for businesses with $1M+ EBITDA, the buyer pays the advisory fee at closing instead of the seller, so the seller pays nothing in advisory fees while still getting professional representation. For very small businesses sold to individual buyers, a traditional broker is often the practical route despite the cost.

Is a business broker worth the commission?

Depends on the deal. For very small businesses sold to individual operator-buyers, a competent broker often is worth it, they reach the marketplace buyer pool you can’t easily reach yourself, and the alternative (selling on your own) often means months of low-quality inbound and weak negotiation. For larger businesses ($1M+ EBITDA), a buyer-paid sell-side advisor often produces a better outcome than a traditional broker, no seller fee, faster close, off-market process, and access to PE-backed and strategic buyer pools that often pay better multiples. The right answer follows the buyer pool that fits your business.

How does the buyer-paid model work?

A sell-side advisor’s fee is structured so the buyer pays it at closing, alongside the buyer’s other transaction costs, rather than the seller paying it from proceeds. This works because the typical lower-middle-market buyer pool, strategic acquirers, PE-backed roll-up platforms, family offices, routinely pays sell-side advisor fees as a normal transaction cost; they prefer working with advisors because it’s faster, more confidential, and reaches better-fit deals than chasing public listings. The seller gets professional representation (positioning, buyer sourcing, process management, negotiation) and pays nothing in advisory fees. It doesn’t work well for very small businesses sold to individual SBA-financed buyers.

What should I check before signing a business broker agreement?

Get the full structure in writing: the commission percentage (or scale tiers); the minimum fee; whether there’s a retainer and if it’s creditable/refundable; the tail period and exactly which buyers count (only those the broker introduced, documented in writing) and for how long; the ‘transaction value’ definition (does the commission apply to cash only, or also to assumed debt, earnouts, rollover equity, consulting payments?); whether out-of-pocket expenses are billed separately; the exclusivity term and renewal mechanics; and what happens if you want to terminate. Negotiate the structure, especially the tail, the minimum, and the transaction-value definition.

How much will a broker charge to sell my $500,000 business?

Roughly $40,000 to $60,000 if it’s a flat 8-12% commission, but check the minimum fee, if the broker’s minimum is $50,000, that’s a 10% effective rate; if it’s $25,000, the percentage governs. Add any separately-billed expenses. With the buyer-paid sell-side model, the seller pays $0 in advisory fees, but that model is more common above $1M EBITDA, a $500K-revenue business may be in traditional-broker (or direct-to-known-buyer) territory. Confirm the exact structure, percentage, minimum, retainer, tail, transaction-value definition, expenses, in writing before signing.