What Do Business Brokers Charge? A Straightforward Look at Fees
One of the most common questions business owners ask when thinking about selling is: “What do business brokers actually charge?”
It’s a fair question - but there isn’t one single answer.
The Most Common Model: The Double Lehman Scale
While there’s no set industry standard, the vast majority of business brokers still follow some variation of the Double Lehman Scale.
Here’s how it typically works:
10% on the first $1 million of deal value
8% on the second million
6% on the third million
4% on the fourth million
2% on anything above that
So, if your business sells for around $5 million, you’re looking at a blended rate that ends up somewhere in the mid-single digits range.
The real estate portion of a deal, if applicable, may be carved out and billed at a more typical commercial real estate commission rate.
Upfront Fees: Yes, They’re Common
In addition to a success fee, many (though not all) brokers will charge an upfront fee. This can range from a nominal amount to something more substantial - especially if the broker invests heavily in preparing your business for sale.
Sometimes this fee is deducted from the success fee at closing. Sometimes it isn’t. This is where it’s important to ask direct questions before you sign an engagement letter.
Negotiability: Not Always a Good Thing
Can you negotiate broker fees? Sometimes. But here’s the catch:
A broker who quickly drops their fee to win your business might be telling you something about how they negotiate… and you’re about to hire them to negotiate the sale of your life’s work. If they fold with you, imagine how fast they will fold with a buyer.
The Bottom Line:
Broker fees vary - but the Double Lehman Scale is a common benchmark. The real question isn’t just “What will they charge me?” but also “Will they maximize the value of my business and get the deal done right?” Because in the end, the cheapest broker can be the most expensive mistake you’ll ever make.
