Business brokers in Orange County charge differently for their services. This is more so because there are a number of factors that affect the service fee. For example, if the business is doing poorly or if a lot of work will have to be done to complete the sale; the brokers will charge you more for their services. The location and size of your business will also have an impact on the broker’s service fee. The best you can do when trying to figure out how much brokers charge is to get the average fee.
When working with an Orange County business broker, you will end up paying a commission of between 8 and 10 percent. This is a percentage of the total price the business will fetch once you sell it. However, this fee is not fixed. There have been unique cases where brokers went as low as 3% and others who charged a commission of more than 12%.
The point you should understand is that the fee structures of business brokers in Orange County varies greatly. It all depends on the size of the brokerage firm. For example, in the event of selling a large enterprise that is valued at more than $10 million, the structure will entail a larger retainer, larger monthly fees and all this on a sliding scale.
No upfront fees
The best thing about working with a business broker in Orange County is that you don’t have to pay an upfront fee. Brokers are only paid when the deal closes. This means that you will not need to part with your money until you finally sell the business. In all that you do, don’t be too quick to settle for brokers who ask you for an upfront fee. Chances are they are there to exploit you.
The best thing about working with the no-sale-no-fee broker is that you can be guaranteed of an aggressive approach in the sale of your business. The broker understands that he will not be paid unless he delivers what was promised. This option will work perfectly for you because you don’t need to keep pushing the broker around; he will deliver results all on his own.
For the services to start, you just need to sign a contract and the Orange County business brokers will start advertising your business for you. Once they sell your business, you will pay them an agreed upon percentage of the total sale price.
All in all, you have to be careful when getting into a contract with a business broker in Orange County. Some brokers may include clauses that will keep you from ever leaving until they sell your business. Read through the contract before signing it.
Business brokers who are adept in selling companies will mostly charge a retainer because there will be a considerable amount of market research, exit preparation and other work involved. The research could take weeks or even months to complete. As a result, successful brokers will not do all this work with the promise of a ‘success fee’ alone.