Short answer
- Success fees commonly run 10% to 15% on deals under $1M, with declining tiers on larger deals.
- Minimum fees, what the fee is calculated on, tail clauses and exclusivity often matter more than the rate.
- In Florida, anyone paid to sell your business must be a licensed real estate broker or work under one.
Typical business broker fees
Most business brokers are paid a success fee at closing, as a percentage of the sale price. Published benchmarks commonly put that between 5% and 20%, with 10% to 15% common for deals between $100,000 and $1,000,000. Larger deals often use declining tiers.
| Fee type | How it works | Watch for |
|---|---|---|
| Flat percentage | One rate on the whole price, common on smaller deals | Minimum fees that push the effective rate far higher on a small sale |
| Lehman formula | 5% of the first $1M, 4% of the second, 3% of the third, 2% of the fourth, 1% above. A $3M sale pays $120,000. | "Double Lehman" doubles every tier |
| Retainer or engagement fee | Paid up front or monthly for preparation and marketing | Whether it's credited against the success fee, and what you get for it |
Contract terms that matter more than the rate
- What the fee is calculated on. "Transaction value" can include inventory, working capital, assumed debt and seller notes. You can end up paying commission on money you haven't received.
- When it's paid. Negotiate fees on seller notes or deferred payments to be paid as you collect, not all at closing.
- Tail clauses. A fee owed if you sell to a buyer the broker introduced, even after the agreement ends. Ask for a time limit and a named list.
- Exclusivity. Whether you owe a fee if you find the buyer yourself. Carve out buyers you already know.
- Offer clauses. Avoid language that triggers a fee on any "acceptable" offer you decline.
Florida licensing
In Florida, anyone paid to sell a business for someone else must hold a real estate broker license or work under a licensed broker. Before you sign a listing agreement, ask for the license number and verify it with DBPR. Consultants who aren't licensed can be paid for advice, but not for selling your business.
How to compare brokers
Don't compare headline percentages. Model the dollars you'll actually keep at a low, expected and high sale price, after fees, other transaction costs and taxes. A broker quoting 8% with a large minimum fee can cost more than one quoting 12% with none.
How I charge
Every engagement starts with a fixed-fee first step, like a Sale-Readiness Assessment, credited if you go forward. Sell-side representation, once my Florida broker license is issued, is a modest retainer plus a success fee paid at closing, with seller-note proceeds paid as you collect them, all in a written agreement before work starts. See selling with me.
FAQ
How much do business brokers charge?
Most charge a success fee at closing, commonly 10% to 15% on deals between $100,000 and $1,000,000, often with a minimum fee. Larger deals frequently use declining tiers like the Lehman formula.
What is the Lehman formula?
A tiered fee: 5% of the first $1M, 4% of the second, 3% of the third, 2% of the fourth and 1% above that. Double Lehman doubles each tier.
Does a business broker need a license in Florida?
Yes. Anyone paid to sell a business for someone else in Florida must hold a real estate broker license or work under a licensed broker.
Sources
This guide is general information, not legal, tax or lending advice. SBA rules and Florida law change; confirm current terms with your lender, attorney and CPA.