Business Broker M&A Fees - Cost To Sell Your Business?

How much does it cost to sell your business? How much do business brokers & investment bankers charge for their services? Who pays the broker fee? Should I work with a business broker to sell my business? In today's video, we cover investment banking and business broker fees in depth talking about the actual cost and types of payment structures seen in the marketplace to pay business brokers. See below the key topics covered;

- Should you hire a business broker? Why does it make sense to hired a good broker/investment banker?
- Brokers get paid on a contingent basis, there are a few structures seen in the marketplace 1) flat fee 2) percentage fee 3) Lehman Fee 4) Reverse Lehman Fee.
- Why do business brokers charge retainers and monthly fees?
- What is the standard % fee for a business sale?
- How to negotiate fees when interviewing business brokers and investment bankers?

Please note that the fees discussed in this video are for lower mid-market and mid-market businesses. Small business brokers selling companies below $500K in enterprise value will typically charge higher rates in the 8-12% range and are not included in the Firmex market study shown.

Looking to sell your business and want to read up more on the selling process? Consider some of the following popular "how to sell your business" books for more information or follow FinanceKid for future content:

https://amzn.to/3Efixki - The Art of Selling Your Business by: John Warrilow
https://amzn.to/3nt1khn - Mergers & Acquisitions Playbook by: Mark Filippell
https://amzn.to/3E9bLwi - How to Build a Business and Sell It for Millions by: Jack Garson

If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! If you want to reach out, contact me at;

[email protected]

If you are looking to sell your business and would like to learn more, please reach out to me for an introductory call. You can contact me through email or through my LinkedIn at;

https://www.linkedin.com/in/robert-be...

Roblee Capital is a Toronto-based M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buy-side M&A services. We work with Canadian-based business owners looking to sell their lower mid-market business. Check out our website at;

https://www.robleecapital.ca/

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