Business broker commission rates run 8% to 12% of the sale price on businesses under $1 million, and they drop to roughly 3% to 8% blended on deals above $5 million.
Turner Investments compared published 2026 fee guides so you can check a broker’s proposal against the market before you sign. A fair deal depends on your price band, the minimum fee, and the tail clause as much as the headline percentage.
Key Points
- Expect 8% to 12% on sales under $1 million, with tiered rates that shrink as the price climbs.
- Read the minimum fee, retainer, and tail clause, because they change your real cost more than the headline rate.
What Business Brokers Charge by Deal Size
Business broker commissions fall into three bands by sale price, and the percentage shrinks as the price grows. CT Acquisitions puts Main Street deals under $1 million at 8% to 12%, lower middle market deals from $1 million to $5 million at 6% to 10%, and mid market deals above $5 million at 3% to 8% blended.
Axial’s 2026 M&A Fee Guide, which surveyed 331 advisors in the second quarter of 2026, found average success fees near 3.4% at $20 million and about 2.0% at $100 million.
| Deal size | Common structure | Typical commission |
|---|---|---|
| Under $1 million | Flat percentage | 8% to 12% |
| $1 million to $5 million | Modified Lehman tiers | 6% to 10% |
| Above $5 million | Tiers plus monthly retainer | 3% to 8% blended |
| About $20 million | Negotiated | Around 3.4% |
| About $100 million | Negotiated | Around 2.0% |
How the Lehman Formula Works
The Lehman formula charges a falling percentage on each million dollars of sale price. Lehman Brothers introduced it in the 1960s: 5% on the first million, 4% on the second, 3% on the third, 2% on the fourth, and 1% on everything above $4 million.
Most small business brokers now use the Double Lehman, which doubles each tier to 10%, 8%, 6%, 4%, and 2%.
Run the numbers on a $2 million sale. Standard Lehman produces a $90,000 fee (4.5% blended). Double Lehman produces $180,000 (9%). Same deal, twice the fee.
Dealflow published those figures, and Morgan & Westfield shows that a $5 million sale under Double Lehman costs $300,000, a 6% blend.
What the Median Deal Costs
A typical small business sale carries a commission of roughly $28,000 to $42,000. BizBuySell reported 2,117 closed small business sales in the second quarter of 2026, a median sale price of $349,250, and an average cash flow multiple of 2.7. At 8% to 12%, the commission on that median sale runs from $27,940 to $41,910.
Those numbers are our calculations from BizBuySell’s median, so your figure will differ.
Small sales get squeezed by minimum fees. A $150,000 business with a $25,000 minimum fee pays 16.7%, whatever the formula says.
Costs That Sit Outside the Percentage
Four contract terms change what you pay more than the headline rate does.
- Retainers: lower middle market brokers charge $3,000 to $15,000 a month for 6 to 12 months, and most credit the retainer against the success fee (CT Acquisitions). Main Street brokers usually skip them.
- Minimum fees: $10,000 to $25,000 on Main Street deals per Morgan & Westfield, and $50,000 to $150,000 in the lower middle market per CT Acquisitions.
- Tail provisions: the broker keeps a claim to a fee for 12 to 24 months if you close with a buyer the broker introduced.
- Transaction value: ask whether assumed debt, earnouts, and real estate count toward the price the percentage applies to.
Who You Will Meet in the Market
BizBuySell runs a widely used marketplace where brokers list small businesses. Sunbelt Business Brokers, Transworld Business Advisors, Murphy Business, and VR Business Brokers operate national office networks.
Offices in a network typically run independently, so request a written fee schedule from each one instead of assuming a brand sets one rate.
How Turner Investments Judges a Fair Deal
A fair commission lands near the middle of the range for your price band, comes with a minimum fee you can absorb, and carries a tail of 12 months or less. That is our opinion, not an industry rule. An offer above the top of the range needs a reason you can name, such as an industry with a thin buyer pool.
Founder Charles Turner writes on the Turner Investments About Us page that he approaches each opportunity by “scrutinizing every aspect before making a decision.” A brokerage agreement deserves the same treatment.
Collect proposals from at least three brokers, and ask for a lower rate in exchange for a longer exclusive listing period, a trade MyFastBroker lists as a negotiation option.
Conclusion
Compare the blended rate, the minimum fee, and the tail clause across at least three written proposals.
A fair deal sits near the middle of the range for your price band and holds the retainer and tail terms to what the work justifies.