Most business brokers charge a commission between 8% and 12% of the final sale price — but that number shifts based on deal size, business type, and how hungry the broker is.
Standard Fee Structure
| Business sale price | Typical broker commission |
|---|---|
| Under $1M | 10–12% |
| $1M – $5M | 8–10% |
| $5M – $25M | 5–8% |
| $25M+ | 2–5% (M&A firms) |
Smaller deals carry higher percentages. A broker earning $80,000 on a $1M sale needs that 8% because smaller transactions take nearly as much work as larger ones.
The Lehman Formula
Some M&A advisors use a tiered structure called the Lehman formula — 5% on the first million, 4% on the second, and so on down. Variations are common. Ask any advisor upfront exactly how they calculate their fee.
What Affects the Final Number
- Sale price (higher = lower percentage)
- Industry and how easy the business is to sell
- Whether you’re using a generalist broker or an industry-specific one
- Your negotiating leverage
FAQ
Can you negotiate the commission?
Yes. Especially on deals above $2M. Most brokers won’t advertise flexibility, but it exists.
Do you pay if the business doesn’t sell?
Usually not — most brokers work on success fees only. If there’s a retainer, that part is typically non-refundable.
Conclusion
Expect to pay 8–12% for most small business sales, with room to negotiate on larger deals. Get the fee structure in writing before you sign an engagement agreement.