Sell My Business Tiera del Sol – How Are Business Brokers Paid?

As you get set to sell my business Tiera del Sol, you will want answers for how the business broker will be paid. The last thing you want is to work with a broker that requires a significant down payment before he even takes on your case. In most cases, brokers that ask for substantial down payments end up disappointing their clients. The best business broker is the one that is paid a commission.

Commission

When getting ready to sell my business Tiera del Sol, you should note that the best business brokers in San Diego are usually paid a percentage of the final selling price of the company. This is what is referred to as a commission. Brokers use the same principle as realtors. After getting a listing, a realtor gets paid a percentage of the final sales price of the real estate at closing. The case is the same with business brokers. If a business broker has your listing, when they ultimately sell your business, they will earn the full commission at the time of closing.

The fee charged by a business broker in San Diego typically ranges from 5% to 10%. This does not, however, mean you have to pay the set fee. There is always room for negotiations before hiring a business broker. You, however, need to note that most reputable brokers with a high success rate may be unwilling to lower their rate.

Co-brokering

If a buyer is working with a business broker during the sale, the seller’s business broker may have to pay a portion of their commission to the business broker of the buyer. This is referred to as co-brokering. With the co-brokering arrangement, the seller will never need to pay an additional commission to the business broker of the buyer. It is your business broker that will pay the co-brokering fee to the buyer’s business broker.

In case your buyer is not willing to co-broke with the business broker of the buyer, the business buyer will be the one to pay the fee of their broker. In this case, the agreed fee is usually a flat rate. Half is paid at the time of retaining the broker and the second half is paid at closing. The buyer may need to pay a percentage of the final sale price to their broker every now and then. These types of fee structures are common in multi-million dollar transactions.

When it is time to sell my business Tiera del Sol, working with a business broker is the best decision you will ever make. You have a higher chance of closing fast, at the best price and for the best terms when working with an experienced business broker.

Sell My Business 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."

Commission

Co-brokering

The Sales Process