How Much Does a Business Broker Charge in Florida?
Understanding Business Broker Fees in Florida
One of the first questions business owners ask when considering a sale is: “How much does a business broker charge?” It is a fair question, and one you deserve a straight answer to before you sign anything.
How Broker Commissions Work
Most business brokers, including our brokerage, work on a commission-only basis. That means we are paid a percentage of the final sale price at closing, and only if and when your business actually sells. There are no upfront fees to list your business. This structure keeps our interests aligned with yours: we get paid when you get paid.
Our Standard Commission
For most small and mid-sized business sales, our standard commission is 12% to 15% of the final sale price. That percentage reflects the substantial work involved in selling a business the right way: valuing it accurately, packaging it confidentially, marketing it to qualified buyers, screening those buyers, and guiding the deal through negotiation, due diligence, and closing. We discuss the exact rate and terms with you during your initial consultation, so everything is clear before you commit to anything.
Larger Transactions and the Lehman Scale
For larger transactions, we use the Lehman scale, a tiered fee formula in which the commission percentage steps down as the sale price increases. The classic Lehman Formula is calculated like this:
- 5% on the first $1 million of deal value
- 4% on the second $1 million
- 3% on the third $1 million
- 2% on the fourth $1 million
- 1% on everything above $4 million
Modified versions of the Lehman scale are common, and the right structure depends on the size and complexity of the transaction. We lay out exactly how the scale applies to your deal up front, so there are no surprises.
Are There Upfront Fees?
We do not charge upfront fees to sell your business. Our fee is success-based, earned at closing when your business sells. Be cautious of any broker who charges large upfront fees with no performance component. Your interests are best protected through a success-based structure, where the advisor is paid when you are.
What Does the Fee Cover?
A broker’s commission typically covers business valuation, preparation of the Confidential Information Memorandum (CIM), confidential marketing to qualified buyers, buyer screening and qualification, managing due diligence, negotiating deal terms, and coordinating with attorneys and accountants through closing. You are paying for expertise, access to buyer networks, and someone whose full-time job is to protect your confidentiality and maximize your sale price.
How Ryan C. Winter Structures Fees
Ryan C. Winter, Business Broker with Truforte Business Group, works with St. Augustine and Northeast Florida business owners on a transparent, success-based fee structure: 12% to 15% for most sales, and the Lehman scale for larger transactions. We go over fees and deal structure in detail during your initial call so there are no surprises. Contact us for a confidential conversation about selling your business.
Related Reading
- How to Sell a Business Without a Broker in Florida
- The Difference Between a Business Broker and a Real Estate Agent in Florida
- Why St. Augustine Business Owners Choose a Local Business Broker
- How a Business Broker Helps
Broker fees are one part of the picture. Here is what selling a business in Florida actually involves.
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