Modified on: May 19th, 2018
The fees charged by business brokers and investment bankers vary based on the selling price of a business, as follows:
- Under $1 million - 10-15% success fee with a $10K to $25K minimum.
- $1 million to $5 million - 8-13% success fee with a $10K to $25K minimum.
- $5 million to $10 million - 2-6% success fee with a $25K to $50K minimum.
- $10 million to $25 million - 1-4% success fee with a $50K to $100K minimum.
- Over $25 million - 1-2% success fee with a $100K minimum.
Success fees are paid if a business sells. Minimums are paid if a business doesn’t sell.
Success fees are calculated as a percent of the purchase price, which isn’t just the cash received by the seller. The price can include debt assumed by the buyer, the value of non-compete agreements, contingent payments, and other forms of consideration.
Thanks for letting us know. How could we improve this answer?