The short answer
If you hire someone to sell your business, you usually pay them a success fee when the deal closes, often as a percentage of the price. Many also charge fees up front. On top of that come your own legal, accounting and tax costs.
The percentage matters, but so do the minimum fee, any retainer, what counts as “the price” and what happens if you sell to a buyer you found yourself.
Business broker commissions
Business brokers mostly handle smaller companies, and their fees reflect that.
| What industry guides report | Typical range |
|---|---|
| Commission on smaller business sales | Around 8% to 12% of the sale price |
| Blended rates for deals of about $1M to $10M | Often around 5% to 8% |
| Minimum fees at larger firms | $35,000 to $50,000 or more |
| Upfront marketing or valuation fees | From a few thousand dollars |
Brokers usually list the business on business-for-sale marketplaces and handle enquiries from the buyers who respond.
M&A advisers and investment banks
For larger companies, owners more often hire a sell-side M&A adviser or investment bank. They typically charge a monthly retainer during the process and a success fee at closing. The percentage usually falls as the deal size rises, sometimes on a sliding scale, but the fee in dollars is still significant. Their strength is a managed, competitive process run on your behalf.
The other costs of a sale
Whoever you work with, expect some costs of your own:
- An M&A lawyer to negotiate the purchase agreement.
- Your accountant, and sometimes a quality of earnings review to prepare for due diligence.
- Tax advice, ideally well before the sale, as structure can make a large difference.
These are worth paying for. They protect you in a transaction you will probably only do once.
Looking for the lowest commission? Compare these
A low headline percentage can still be expensive. When you compare advisers, ask:
- What is the minimum fee? On a smaller deal it can outweigh the percentage.
- Is there a retainer or upfront fee, and is it credited against the success fee?
- What counts as the price? Some fees apply to debt assumed, earn-outs or equity you keep.
- How long is the exclusivity, and is there a “tail” - a fee owed if you sell to a buyer they introduced after the agreement ends?
- What happens if you find the buyer yourself?
How a buyer-paid introduction is different
Casspium works the other way round. Private equity firms, family offices and corporate buyers hire us to find companies that fit what they want to acquire, and they pay our fee. If your business fits, we introduce you confidentially. You pay Casspium nothing - before, during or after a sale.
| Business broker | Casspium | |
|---|---|---|
| Who pays the adviser | You | The buyer |
| Typical cost to you | A success fee, often several percent, sometimes plus a retainer | $0 |
| How buyers are found | Usually a public listing | Direct introductions to buyers whose criteria fit |
| Whose side they are on | Yours | The buyer’s, and we say so up front |
That last line matters. We represent buyers, not you. If you want an adviser to run a competitive auction on your behalf, a sell-side adviser is the right choice. If you want to explore genuine interest from serious buyers, confidentially and without paying a commission, talk to us - and keep your own lawyer and accountant alongside.
Which route suits you?
- You want the widest possible market and a managed auction: a sell-side adviser or investment bank.
- You run a smaller business and want it listed: a business broker.
- You want to know what serious buyers would pay, without a fee or a public process: a buyer-side introduction.
Many owners talk to more than one before deciding. See how we work with owners, or estimate what your business could be worth.
Thinking about a sale?
Casspium introduces owners of established private companies to private equity firms, family offices and corporate buyers. Buyers pay our fee, so a confidential conversation costs you nothing.