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’s a fair question — and one you deserve a straight answer to before you sign anything.

The Standard Commission Structure

Most business brokers in Florida work on a commission-only basis, meaning they receive a percentage of the final sale price at closing — with no upfront fees. The standard commission rate for small business sales (under $1 million) is typically 10%–12% of the gross sale price. For transactions in the $1 million to $5 million range, fees often fall between 8%–10%. Larger middle-market deals (above $5 million) handled by M&A advisors typically use the Lehman Formula or a modified version: 5% on the first million, 4% on the second, 3% on the third, and so on.

The Lehman Formula Explained

The classic Lehman Formula calculates fees on a tiered basis:

• 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

Many M&A advisors use a modified Lehman Formula with a higher percentage on the lower tiers to reflect the fixed cost of running a transaction regardless of deal size. Always ask your advisor to specify exactly which formula applies.

Are There Upfront Fees?

Some brokers charge a retainer or engagement fee upfront — particularly M&A advisors handling larger or more complex transactions. These fees typically range from $2,500 to $25,000 or more and are often credited against the success fee at closing. Retainers help ensure the seller is serious and compensate the advisor for the substantial work done before a deal is signed. Be cautious of brokers who charge large upfront fees with no performance component — your interests should be aligned through a success-based structure.

What Does the Fee Cover?

A broker’s commission typically covers: business valuation, preparation of the Confidential Information Memorandum (CIM), marketing to qualified buyers, buyer screening and qualification, managing due diligence, negotiating deal terms, and coordinating with attorneys and accountants through closing. In a quality engagement, you’re paying for expertise, access to buyer networks, and someone whose full-time job is to maximize your sale price.

Is There a Minimum Fee?

Most brokers charge a minimum fee — often $15,000–$25,000 — regardless of the final sale price. This ensures the engagement is economically viable even for smaller deals. If your business is expected to sell for under $150,000, a traditional broker may not be the right fit; other options like direct sale or auction platforms may be more appropriate.

How Ryan C. Winter Structures Fees

Ryan C. Winter works with St. Augustine and Northeast Florida business owners on a transparent, success-based fee structure. We discuss fees and deal structure in detail during your initial consultation so there are no surprises. Contact us for a confidential conversation about selling your business.

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