What does a business broker charge?

Broker commissions are negotiated and decline as transaction value rises. BizQuest, a US marketplace, reports a typical rate of 10% on transactions of $1 million and under, within a range of 8% to 15%, and minimum fees of $10,000 to $25,000. Most brokers do not charge a retainer.

How does InvestDeal differ from a business broker?

InvestDeal represents the seller exclusively and approaches qualified buyers directly, without a public listing. Each buyer executes an NDA and is approved by the seller before the company’s identity is disclosed. The success fee is 5% of transaction value, payable on closing, with no fees before it.

Is a 5% fee lower than a broker’s commission at every transaction value?

Against a 10% commission, a 5% fee is half at every transaction value. Against the Double Lehman scale, a 5% fee is lower up to approximately $6.7 million and higher above it. The fee comparison above calculates both at the value entered.

What fees apply if the business does not sell?

No fee is payable to InvestDeal, since the success fee is due only on closing. With a broker, the listing agreement governs, and it may provide for upfront fees or a minimum fee.

InvestDeal

SELLING

InvestDeal compared with a business broker

Fee structure, buyer outreach and disclosure compared on published terms, with fees calculated at the transaction value entered.

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Terms of engagement

BUSINESS BROKER

InvestDeal

Success fee
BUSINESS BROKER
Commission on closing, typically 10% of transaction value up to $1 million and declining above it
INVESTDEAL
5% of transaction value
Payable on closing only
Minimum fee
BUSINESS BROKER
Commonly $10,000 to $25,000 on smaller transactions
INVESTDEAL
None
No fee where no transaction closes
Upfront fees
BUSINESS BROKER
Retainers uncommon, with valuation or marketing fees charged by some brokers
INVESTDEAL
None
No retainer or listing fee
Buyer outreach
BUSINESS BROKER
Public listing on business-for-sale marketplaces, with inbound enquiries screened
INVESTDEAL
Direct outreach to qualified buyers
No public listing
Disclosure
BUSINESS BROKER
Blind listing withholds the company name, while the profile remains publicly visible
INVESTDEAL
Anonymous profile, NDA and seller approval
Identity and financials released only to approved buyers
Valuation
BUSINESS BROKER
Broker opinion of value, in some cases for a separate fee
INVESTDEAL
AI valuation at no cost
Prepared from the company’s financial statements

Fee comparison by transaction value

Fees for each sale route, calculated on published terms at the transaction value entered.

Transaction value

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Business broker$140,000
10% on the first $1 million, declining on each further million, with a $10,000 minimum9.3% of transaction value
Payable before closing: Typically none
M&A advisor$140,000
Double Lehman scale, with a $35,000 minimum9.3% of transaction value
Payable before closing: Retainer of $5,000 to $50,000, commonly credited against the success fee
InvestDeal$75,000
5% of transaction value, payable on closing5.0% of transaction value
Payable before closing: None

Broker and advisor terms reflect typical US market terms published by BizQuest. Actual terms are negotiated. Legal, accounting and tax costs are excluded from every route.

Sale process

BUSINESS BROKER

01Valuation and asking price agreed, and an exclusive listing agreement executed for a fixed term.
02Listing prepared for business-for-sale marketplaces, with the company name withheld.
03Inbound enquiries screened, and an NDA executed before information is released.
04Site visits, offers and negotiation managed by the broker.
05Commission payable on closing.

InvestDeal

01AI valuation prepared from the financial statements, at no cost and without commitment.
02Anonymous company profile prepared by InvestDeal.
03Qualified buyers identified and approached directly.
04NDA executed and each buyer approved by the seller before identity and financials are released.
05Offers evaluated side by side and the transaction negotiated through to closing.
06Success fee of 5% payable on closing.

Suitability

BUSINESS BROKER

Sellers seeking a locally based intermediary engaged in person throughout the process.
Asset sales of businesses that have ceased operating.
Sellers with an existing broker relationship and relevant sector experience.

InvestDeal

Sellers requiring the process to remain undisclosed to employees, customers and competitors until a buyer is approved.
Companies whose likely acquirers include strategic buyers and investment funds beyond the local market.
Sellers seeking an independent valuation before deciding whether to proceed.

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