I’ll shoot straight with you—I didn’t even know what a business broker was until I found myself sweating bullets at a Waffle House, trying to sell my small chain of laundromats to a guy named “Cowboy Dave” who paid in quarters and smelled like brake fluid.

Let me back up.

How I Got Myself Into This Mess

A few years ago, I owned three decently profitable laundromats across east Texas. Nothing fancy—no kombucha machines or cold brew taps, just washers, dryers, and the occasional rogue sock that’d reappear two weeks later like a ghost from the past.

I’d built them up from scratch—bootstrapped every location with more grit than capital, duct tape over dollars. And after five years of nonstop hustle, I was burnt crispier than a Sunday brisket. I needed out.

So, I did what every totally unprepared entrepreneur does: I Googled “how to sell your business without a broker.” Spoiler alert: it went about as well as letting your cousin do your tattoos.

Enter the Business Broker

After Cowboy Dave ghosted me post-deposit (surprise), I decided to actually consider hiring a professional that I found on Business Broker News. Enter: the business broker. Think of them like a real estate agent—but instead of houses, they sell entire companies. Ideally with fewer emotional support llamas involved.

The first thing I asked was, “How much do you charge?”

And here’s where the real education began. So if you’re wondering about the actual costs of hiring a business broker—what’s fair, what’s sketchy, and what might leave your wallet looking like a tumbleweed—you’re in good company.

Let’s break it down.

💰 The Commission Fee (a.k.a. the Big Kahuna)

Most business brokers work on a commission-based structure. That means they only get paid when your business sells—which sounds like a win-win, right?

Wrong. Well, not always wrong… but let me explain.

Typical commission rates look something like this:

• 10% of the sale price for businesses under $1 million

• Sliding scale for larger deals (say, 5-8% for a $2–5M sale)

• Sometimes they use the Double Lehman Formula, which sounds like a law firm but is really just a tiered commission model:

  • 10% of the first $1M

  • 8% of the second $1M

  • 6% of the third… and so on

Now here’s the kicker. Some brokers charge a minimum fee, regardless of your sale price. I had one guy tell me, “Yeah, our minimum is $35,000.” Bro, I’m trying to sell a laundromat, not the Houston Astros.

Lesson learned: always ask about minimums. Don’t assume it’s all percentage-based.

📋 The Upfront “Engagement” Fee

This one caught me off guard. Some brokers (especially the more “buttoned-up” outfits) charge you just to get started. They call it an engagement fee, a retainer, or if they’re feeling real fancy, an initial consulting charge.

Typical range?

• $2,000 to $15,000, depending on the size of your business

This is usually to cover things like:

• Preparing your business for market

• Valuation analysis

• Creating that glossy, 38-page pitch deck full of acronyms and adjusted EBITDA charts

Was I skeptical? Sure. But I’ll say this—once I paid it (reluctantly), my broker actually showed up with a game plan. Which was a refreshing change from Cowboy Dave, whose only plan involved asking if my machines “ran good.”

🔍 Marketing Fees (a.k.a. “Extras” That Add Up)

Here’s the part that felt like buying a used car: add-ons.

Some brokers throw in the bells and whistles—confidential teasers, premium listings on biz-for-sale websites, print advertising (does anyone still read print ads?), buyer list outreach, all of it.

Some include these in the commission.

Some… do not.

I once got hit with a surprise invoice for $1,800 worth of “confidential buyer screening services.” It sounded like CIA-level background checks, but turned out to be a guy emailing buyers from a Gmail account.

Pro tip: Ask what’s included in the commission, and what’s gonna show up later like an unexpected bar tab.

🧠 Bonus Round: Valuation Fees

A few firms will try to rope you into paying separately for a business valuation before they’ll even agree to list you. Sometimes this makes sense—especially if you want an objective third-party appraisal.

But if you’re already paying a retainer, and they’re doing a valuation as part of the process? Double-dipping, my friend. Watch for it.

So, Are Business Broker Fees Worth It?

Here’s the unfiltered truth:

If you’re selling a legit business (say, $500K+ in annual revenue), and you want a clean, confidential sale with someone who knows what they’re doing—a broker can be worth every penny.

Mine found me a buyer in six weeks. Negotiated a better deal than I could’ve ever pulled off solo. Managed the due diligence. Handled the paperwork. Even talked me off a ledge when I got cold feet three days before closing.

Was it cheap? Nope. He took 10% of the $620,000 sale—so a $62,000 check.

But I walked away with peace of mind, a bottle of whiskey, and the ability to sleep at night without wondering if Cowboy Dave was coming back for “one last look.”

Key Takeaways (For Folks Who Like Lists More Than Rambles)

• Commission fees are usually 8-12% of the sale price—ask about minimums

• Upfront fees (retainers) range from $2K to $15K—clarify what they cover

• Marketing and listing costs can be sneaky—ask what’s included

• Valuation services may be extra—don’t pay twice

• Good brokers can increase your final sale price (and your sanity)

Final Thoughts (and One Last Story)

If I could do it all over again, I’d skip the Craigslist listings and awkward coffee shop meetings. I’d hire the broker sooner, not later.

Don’t try to outsmart the process just to save a buck. You’re not selling a used lawnmower—you’re selling a legacy. A broker might charge you a fee, yeah, but screwing it up costs more.

And if your broker shows up in cowboy boots and offers to pay in coins? Politely decline. Then call someone with a contract, a buyer list, and real deodorant.

Your future self will thank you.