A broker’s commission is often the single biggest cost of selling — so it pays to understand exactly what you’re buying. Used well, a good broker more than earns their fee by reaching more buyers, protecting confidentiality, and negotiating a better outcome.
What a business broker actually does
A broker prepares your business for sale, sets a price range, markets it confidentially, qualifies buyers, and manages negotiations through to settlement. Think of them as the agent who runs the whole campaign so you can keep running the business.
Typical commission
Most Australian brokers charge a commission based on the final sale price, commonly in the range of 8% to 12%, with the percentage often lower on larger deals. Some modern brokerages charge a flat or reduced rate. Always get the fee structure in writing.
On a $1,000,000 sale, a 10% commission is $100,000. A difference of even two percentage points is $20,000 — so the rate, and the value behind it, is worth scrutinising.
The other costs to budget for
Beyond commission, plan for legal fees, accounting fees, and any marketing costs. And don’t forget tax: the small business CGT concessions can have a far bigger impact on your net proceeds than the broker’s rate.
Do you actually need a broker?
No — it’s optional. Very small or simple sales, or a sale to a known buyer such as family or an employee, can sometimes be handled privately with a good lawyer and accountant. For most owners, though, a broker’s buyer network and confidentiality are worth the fee.
How to choose — questions to ask
Ask about experience in your industry and deal size, recent comparable sales, their marketing approach, the full fee structure, and the engagement length. Check credentials with the AIBB and speak to past clients. Compare vetted brokers here.
This guide is general information only and does not take account of your personal circumstances. It is not financial, tax or legal advice. Speak to a qualified adviser before acting.