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Archive for 'Business Broker Fees' Category

Business Broker Industry Fees

By Hoke - Last updated: Monday, September 3, 2012

Business Broker fees are set by the individual Business Broker firm and vary. Most firms work on a “Success Fee” where they earn a fee only if the transaction closes. Commission is typically paid from the sale proceeds. Some firms require an upfront retainer fee. Although there are exceptions, the Commission Percent charged averages about […]

Why do Business Brokers get 10% and Real Estate Brokers get 6%

By Hoke - Last updated: Sunday, August 15, 2010

Ten Percent is the longstanding traditional Business Brokers Commission. Why? It’s the Market Fee that almost everyone else charges.  Why do Real Estate Brokers get 6%? It’s the Market Fee that almost everyone else charges. Is 10% too high? Aside from the required Accounting and Financial background, here is our take on this issue. The […]

Minimum Broker Fees

By Hoke - Last updated: Sunday, August 15, 2010

Because Business Sale transactions values can sometimes go below $50,000 most Business Brokers charge a Minimum Fee that ranges from $5,000 to $15,000. The Minimum Fee is typically described in a sentence that states “… 10% of the transaction amount or the Minimum Fee whichever is higher”.

Some Brokers offer 5% and 6% Commissions

By Hoke - Last updated: Sunday, August 15, 2010

Most of the 5% to 6% Commission Brokers I’ve met are Residential Real Estate Agents anxious to get a Listing or try something new. They assume Business Listings get the same commission as selling a home. While selling a home and business require the same Real Estate license, the skill sets and marketing venues are […]