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.

A Worked Example: What a Seller Actually Nets

Numbers make the fee easier to judge than percentages do. Take a Florida service business that sells for $1,000,000 with a 12 percent success fee. The commission is $120,000, paid at the closing table out of the buyer’s funds. The seller does not write a check; the closing agent disburses the fee from the proceeds, the same way a real estate commission is handled.

The broker fee is rarely the only cost of the sale, so a realistic net looks more like this: attorney fees for the purchase agreement and closing documents, your CPA’s time on the tax picture and the allocation of the purchase price, any lease assignment fee your landlord charges, and the payoff of equipment loans or lines of credit that the buyer is not assuming. On a $1,000,000 sale those items commonly add up to a five-figure sum, and they vary far more from deal to deal than the commission does. A good broker walks you through all of them before you list, not at closing.

The part most owners underestimate is the other side of the ledger. The fee buys a defensible valuation, a blind marketing profile that protects your identity, screening that keeps unqualified buyers away from your financials, negotiation of price and terms, and management of due diligence and financing through closing. Owners who sell without representation tend to give back more than the fee in price, terms, or a deal that falls apart late. For a fuller picture of every cost, see what it actually costs to sell a business in Florida.

Frequently Asked Questions

Do Florida business brokers charge upfront fees?

Some do, usually as a retainer or a marketing package. I do not. My fee is a success fee paid at closing, so I am paid only when your business sells. If a broker asks for money up front, ask exactly what it buys and what happens to it if the business does not sell.

Who pays the business broker commission, the buyer or the seller?

The seller pays it, out of the proceeds at closing. When another Business Brokers of Florida member brings the buyer, the fee is split between the two brokerages under the co-brokerage agreement; the seller pays one fee, not two.

Is the commission negotiable?

The rate reflects the work, and the work is largely the same whether a business sells for $400,000 or $900,000, which is why Main Street rates sit in a fairly narrow band across Florida. On larger transactions the fee steps down through the Lehman scale, and I put the exact structure in writing before you sign a listing agreement, so there are no surprises later.

What does the broker fee include?

Valuation and pricing, preparation of your financials and a confidential marketing package, listing through the BBF MLS and the major business-for-sale marketplaces, buyer screening with a signed non-disclosure agreement and proof of funds before anyone sees identifying details, showings, negotiation of offers and the letter of intent, coordination of due diligence and SBA financing, and management of the closing and transition. Attorney and CPA fees are separate.

How does the Lehman scale work?

It is a tiered structure used on larger deals: a higher percentage applies to the first portion of the sale price and progressively lower percentages apply to each portion above it. The blended rate on a multi-million-dollar sale therefore lands well below the Main Street rate. I quote the exact tiers for your business in writing before listing.

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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.

For a walkthrough of what a listing engagement looks like from first call to closing, see how I sell a business in Florida.

Commission is only part of choosing representation. For how the leading firms compare on approach and track record, read my honest review of the best business brokers in Florida.

• Category: Business Broker Tips, Northeast Florida