Among the successful investments in the transaction can be safely noted consultations with business brokers. Thus it is possible to avoid mistakes, get valuable recommendations. Relevant for many is the question of how much such services cost. It is worth understanding it in more detail. Website Closers will help sell my business profitably.
Methods of calculating remuneration
Dealing with the question of what is the cost of services of a business broker for the sale of business prices, commissions depend on various factors, among which the type of business, its value, as well as the complexity of the transaction and the region. More often than not, brokers use a few basic methods to calculate commissions:
- The commission ranges from five to twelve percent of the transaction amount. This is the average range.
- For small businesses, the commission is ten to twelve percent.
- For large businesses, a reduction to three or five percent is possible.
It is also possible for a business broker to charge a fixed price to support the transaction and most often charge a fee at the stage of preparing the business for sale. This includes valuation, marketing, finding buyers. The cost depends on the complexity.
For small businesses, where the percentage of the transaction may be insufficient, a minimum commission is charged. It does not depend on the amount of the transaction, it is fixed. Additional costs are taken into account.
Commission - peculiarities of calculations
Considering the work with a business broker, it should be taken into account that there is a possible commission of a business broker when buying a ready-made business and here it is worth understanding the peculiarities of calculations:
- Most often the commission is paid only in case of successful completion of the transaction.
- The terms of the commission should be fixed in the contract with the broker. The commission for a successful sale is the main source of earnings for the broker. It is paid between five and twelve percent of the sale of the business, can be as much as twelve percent for small businesses. For large businesses, the percentage drops to seven percent.
- If the business is sold for a small amount, brokers set a minimum threshold for remuneration.
Marketing, advertising costs may also be taken into account. Additional fees may be charged for promoting the business on specialized platforms, advertising campaigns. In the case of accounting expertise, in the case of legal support, business valuation, brokers charge an additional amount for paid services. The final cost consists of a preliminary fee for preparatory work, commission for the transaction in the form of a fixed percentage of the sale amount, marketing, legal expenses in the form of additional costs.
Company valuation services
Considering the services of a business broker to assess the value of the company is a key stage that is carried out before the sale, purchase, restructuring of the business. Professional valuation services provided by business brokers are based on the analysis of financial, market and strategic factors. It is worth emphasizing the main features of the services:
- A comprehensive approach is carried out, taking into account all factors such as financial results, market and assets, as well as debts, intangible assets. Different valuation methods are used. These are income and comparative, cost method.
- Transparency. A reasonable, documented valuation is provided, taking into account the current market situation, forecasts.
- Individual approach. The industry, the size of the business, its position in the market are taken into account, services are customized for certain purposes, whether it is a sale or attracting investors, merger.
It is important to contact a professional broker for the best results. It should be an experienced business broker the cost of services per consultation can vary.
