Commercial Business Sales Tiera del Sol – What is the Commission of a Business Broker?

Are you ready for commercial business sales Tiera del Sol? If you are, the first thing you need to do is hire a business broker. You will be spoilt for choice when searching for the best business broker in San Diego. You, however, need to remember that brokers are not all the same. Some are better than others. You also need to understand that their fees vary. The more money you pay in commission; the more money you will lose after closing. This is why you need to understand precisely how business brokers charge for their services.

As you prepare for commercial business sales Tiera del Sol, the first point you must understand is that the commission charged by business brokers is not set by law. The commission is always a private negotiation between you, the seller, and the business broker. For example, if a broker charges a commission of 10%, you can negotiate for an 8% commission or even go lower. It all depends on what you are pitching.Â

Once a deal is struck, the commission is memorialized in a service contract. To put it simply, the commission charged by a business broker in San Diego is whatever you and the broker agree to. Never settle for the first figure that is given to you by the broker. You should also not be afraid of negotiating for better terms.

Several factors help business brokers establish their commission. The most impactful factor is the region you are in, the type of business you own, the size of the business and its listed selling price. The most common business broker commission range is between 10% and 15% for businesses valued between $100,000 and $1,000,000.

For businesses valued at below $100,000, it is common for a business broker to charge a flat fee. For example, a broker can charge you between $10,000 and $15,000 for a business valued at $95,000. If the price of your business is more than $1,000,000, you can negotiate for a lower commission. This could be 10% for the first $1,000,000 and 8% for anything about that.

When buyers choose to hire their business brokers, they hire the brokers as advisors or consultants. This means if your broker does not agree to co-brokering, the buyer will pay the full fee of their broker. In most cases, buyers who hire their brokers negotiate a flat fee where half of the fee is paid at the time of hiring, and the balance is paid at closing. The fee can be anywhere from $5,000 to $25,000.

As you prepare for commercial business sales Tiera del Sol, the critical point to remember is that everything is negotiable. You also need to remember that the commission charged will be dictated by what is customary in the region and what a business brokerage firm has established.

Commercial Business Sales Tiera del Sol

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

The Sales Process