A business broker
Brokerage commissions
In consideration of the brokerage successfully finding a satisfactory
buyer for the property, a broker anticipates receiving a commission for
the services the brokerage has provided. Usually, the payment of a
commission to the brokerage is contingent upon finding a satisfactory
buyer for the business for sale, the successful negotiation of a purchase
contract between a satisfactory buyer and seller, or the settlement of the
transaction and the exchange of money between buyer and seller.
In North America a commission in the 10% to 12% range is considered
"standard" for business brokerage services and is typically paid by the
seller at the closing of the transaction. The standard commission is
likely to be lower in the United Kingdom (see Lehman scale). Commissions
are negotiable between seller and broker. The commission could also be
paid as flat fee or some combination of flat fee and percentage,
particularly in the case of lower-priced businesses, businesses in the
multi-million dollar price, or other unusual business assets. The details
are determined by the listing contract. |
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Napa
Valley Business Brokerage
1125 Jefferson,
Napa, CA 94558 707
257-6857 |
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Out of the commission received from the seller, the broker will
typically pay any expenses incurred to do the work of trying to sell
the listed businesses, such as advertisements, etc.
All compensation to a broker paid by a third party must be disclosed
to all parties.
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Also See:
Business Index
Keyword Category
Index
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