business broker commission?
I am getting charged 10k or 10% of the transaction whatever is greater with my business broker. The commission seems high for selling a food retail store.
What is the industry standard?
Should I be finding a different broker, and how do I know the one
I'm dealing with is good besides what they tell me.
If I find the buyer is giving the broker 5% to do
the paper work and transaction reasonable?
- Ed AtunLv 78 years agoFavorite Answer
This is tough. Most business brokers charge somewhat similar rates. But you can get the commission down if you have a great retail store which is attractive to buyers. The high commission is to offset the long selling times that businesses face.
You have to call references for each broker. And then wonder if they gave you the names of family members.
If you find the buyer, you still have to pay the broker 10% unless you get a reduction signed well in advance.
It is a good idea to keep all listing agreements short. No more than 3 months. If you are happy, keep re-listing. if you are not happy (or impressed), let the listing expire and hire someone new.
- 6 years ago
Selling a business can be a confusing and complex process that most business owners have little to no experience with. Not understanding how to protect yourself and your business during the process can leave you exposed and with a flimsy deal structure. You can only sell your business once, so it is best to work with a professional business broker who can handle the process from start to finish ensuring you end up with a better deal structure than going it alone. 10% is the industry standard ( some charge 12%)
It takes average of 9 months to sell a business !!! , this is why agreement is usually for 12 months