How Much Do Business Brokers Charge? (2026)
Business brokers charge 8% to 12% of the sale price on deals under $1 million. Above that the rate falls as the price climbs, often to 5% or 6%.
Three things about that fee catch sellers out:
- There is a floor. Most brokers set a minimum fee of $15,000 to $50,000. On a small sale, the minimum beats the percentage.
- The scale is not the one you think. The common tiered formula charges double the old rates, and brokers prefer it for good reason.
- The fee does not cover your lawyer. Budget $5,000 to $15,000 on top for the contract.
What Brokers Charge, by Deal Size
The percentage falls as the price rises. Selling a $500,000 shop takes about as much work as selling a $3 million one, so small deals carry the higher rate.
| Sale price | Typical fee | In dollars | You keep |
|---|---|---|---|
| $500,000 | 8% to 12% | $40,000 to $60,000 | $440,000 to $460,000 |
| $1 million | 8% to 12% | $80,000 to $120,000 | $880,000 to $920,000 |
| $3 million | 6% to 8% | $180,000 to $240,000 | $2.76M to $2.82M |
| $5 million | 5% to 6% | $250,000 to $300,000 | $4.70M to $4.75M |
Published ranges agree on the shape. One 2026 breakdown puts small businesses at 8% to 12% with minimums of $10,000 to $50,000. Another survey of advisers reports 5% to 12% depending on size.
The Four Ways Brokers Price a Deal
1. A flat percentage
One rate on the whole price. Most common under $1 million, usually 10% to 12%. Simple to read and simple to check.
2. The Lehman scale
A sliding scale from the 1960s. It charges 5% on the first million, 4% on the second, 3% on the third, 2% on the fourth, then 1%. You will rarely be offered it today.
3. Double Lehman
The same scale with every tier doubled: 10%, 8%, 6%, 4%, then 2%. This is the standard offer on deals between $1 million and $10 million, and it costs you roughly twice the original.
4. A minimum or flat fee
A floor that applies whatever happens. Main Street brokers set it at $15,000 to $25,000. Larger firms set it at $50,000 or more.
Double Lehman, Worked Through
This is the number that surprises people. Here is the same sale priced both ways.
| Sale price | Double Lehman | Blended rate | Old Lehman |
|---|---|---|---|
| $2 million | $180,000 | 9.0% | $90,000 |
| $3 million | $240,000 | 8.0% | $120,000 |
| $5 million | $300,000 | 6.0% | $150,000 |
The gap is the point. Brokers moved to the doubled scale because the old one paid too little on mid-size deals. It is now the default for deals between $1M and $10M.
Check which scale your agreement names. “Lehman” alone is ambiguous, and the difference on a $3 million sale is $120,000.
The Fees That Are Not the Commission
The percentage is the headline. These sit underneath it.
- Money up front. $10,000 to $25,000 on smaller deals. Larger firms charge $3,000 to $15,000 a month instead, usually credited against the final fee.
- Marketing charges. $500 to $5,000, sometimes folded into the up-front money and sometimes billed on their own.
- The minimum fee. $15,000 to $25,000 on Main Street deals, $50,000 or more at bigger firms. On a $150,000 sale a $25,000 minimum is a 16% rate.
- What counts as the price. If the agreement applies the fee to the whole business value rather than the price net of stock on the shelves, you pay more. Ask which.
- Whether the up-front money counts. Some agreements credit it against the success fee in full, some credit half, and some credit nothing. Ask before you sign.
What the Contract Locks You Into
Three clauses decide how long you are committed, and they matter as much as the rate.
What the Fee Does Not Cover
Sellers often read the commission as an all-in price. It is not.
| Item | In the fee? | What it costs you |
|---|---|---|
| Pricing your business | Yes | Nothing extra |
| The sales packet | Yes | Nothing extra |
| Finding and screening buyers | Yes | Nothing extra |
| The purchase contract | No | $5,000 to $15,000 in legal fees |
| Tax advice | No | Your accountant’s rate |
| Cleaning up your books | No | Your bookkeeper’s rate |
What You Can Negotiate
More than most sellers try. Brokers expect the conversation.
- The rate itself. Offering exclusivity is worth a 1 to 3 point cut. Ask for it directly.
- The tail, by name. The single most valuable change you can make to the contract.
- The exclusive period. Six to twelve months is standard, and some firms ask for twelve to eighteen. Six with a renewal option beats twelve locked in.
- A carve-out. Name buyers you already know, so no fee is owed if one of them buys.
- Crediting the retainer. Get it in writing that every dollar up front comes off the final fee.
What you will not move is the minimum fee. That is the broker’s floor for taking the job at all.
Is the Fee Worth Paying?
Sometimes. If your books are a mess, you have no time, or you cannot name ten plausible buyers, a broker earns the money.
If none of that is true, you are paying six figures for introductions. Six other routes exist, and our guide to selling without a broker covers the work involved.
Related Guides
- Know the number the fee comes out of. See how much your business is worth.
- Check what a broker is competing with. Compare every place you can sell a business.
- Selling without going public? Read how a quiet, off-market sale works.
Frequently Asked Questions
Expect 8% to 12% of the sale price under $1 million. Between $1 million and $5 million it is 6% to 8%, and above that 5% to 6%. A minimum fee of $15,000 to $50,000 applies on top, and it overrides the percentage on small deals.
A sliding scale on the price. It charges 10% on the first million, 8% on the second, 6% on the third, 4% on the fourth, and 2% above that. On a $3 million sale that is $240,000. The original 1960s version was half those rates.
The commission is only owed on a completed sale. Money you paid up front is usually not refunded, and monthly charges keep running while you are listed. So you can spend $10,000 or more and still have no deal.
A floor the broker charges whatever the sale price. It runs $15,000 to $25,000 at Main Street firms and $50,000 or more at larger ones. On a $150,000 sale, a $25,000 minimum works out to about 16%, not 10%.
The rate usually is, by 1 to 3 points, especially if you grant exclusivity. The contract terms are more negotiable still. Push hardest on the tail clause and on naming buyers you already know as carve-outs. The minimum fee rarely moves.
A term saying you still owe the fee if you sell to a buyer the broker introduced. It runs 6 to 12 months after the agreement ends. Ask for the covered buyers to be listed by name. A tail covering anyone they contacted is very hard to escape.
Many do. Smaller deals carry $10,000 to $25,000 up front. Larger firms bill $3,000 to $15,000 a month instead. Ask in writing whether it comes off the final fee, because some agreements credit it in full and some credit none of it.
The seller, in almost every case. The fee comes out of your money at closing. Buyers know the commission is built into your asking price, which is one reason some prefer to buy directly from an owner.
Prices the business, writes the sales packet, finds and screens buyers, keeps the sale confidential, and pushes the deal through to closing. Your lawyer and accountant are separate, and you pay them either way.
Next Steps
- Take your likely sale price and multiply it by 10%. That is the number you are deciding about.
- Ask any broker for three figures in writing: the rate, the minimum, and the money up front.
- Read the tail clause before anything else. If it is not limited to named buyers, ask for that change.
- Before you sign, get a free valuation and buyer introductions. No fee, no exclusive, no obligation to sell.