David C Barnett Small Business and Deal Making M&A SMB

Before You Hire a Business Broker—Watch This!

Oct 29, 2025
Explore the intriguing dynamics between business brokers and owners as the host tackles viewer questions. Discover how brokers get paid and why their motives matter to sellers. Learn to differentiate between seasoned professionals and amateurs in the brokerage world. Uncover the pitfalls of relying solely on flashy branding and how to assess a broker's true value. Valuable insights will empower you to navigate the brokerage landscape and protect your interests, whether you're buying or selling a business.
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ADVICE

Typical Broker Fee Structure

  • Charge up-front engagement or evaluation fees to cover your preparation and marketing costs.
  • Expect commissions around 8–12%, commonly 10%, with separate rates for real estate.
INSIGHT

Reputation Shapes Broker Pricing

  • Broker fees and terms depend on market competition and the broker's brand.
  • Higher reputation or specialization lets brokers demand engagement fees and better terms.
ADVICE

Clarify Marketing Fees And Credits

  • Expect marketing or monthly retainers in mid-market M&A engagements and ask whether fees credit against commission.
  • Clarify billing structure and any commission credits before signing.
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