Update: Found a broker. Their commission structure is… something.

★★ signal-medium r/smallbusiness · ↑ 58 · 💬 40 · 2026-05-01 · kw: buy box price · open on reddit ↗

Tool

none

Issue

Business broker commission structure (Lehman scale) totals $360K–$400K on an $8M–$10M exit, plus $150K minimum fee and $30K–$55K in ancillary costs (QoE, legal, accounting), forcing founder to choose between $400K+ all-in broker service or doing everything independently with no middle-ground hybrid option.

Cost

$400K–$450K total fees on $8M–$10M sale; founder exploring whether $400K can instead purchase attorney, QoE, and hourly M&A consultant separately.

Recommendation

Lower-middle-market investment bankers at 4% flat; hourly M&A consultant + attorney + QoE à la carte (disputed); brokers offering success-fee-only model without retainer, or tiered hourly retainers for specific services (disputed); buyer-paid QoE (partially disputed).

Date context

2026-05-01; evergreen M&A structure, no version/platform changes noted.

extracted with

anthropic/claude-haiku-4.5 · 2026-05-08

Body

Quick update for anyone following along: I’ve been going back and forth on whether to use a broker or sell myself (posted about it recently). Decided to at least hear out a few more brokers before committing to anything. Found one I actually liked. Seemed knowledgeable, didn’t give me the “we have buyers lined up” pitch, was straightforward about the process. They came back with a preliminary valuation range of $8-10M for my business. Cool. Great. Then they walked me through their fee structure. It’s called a Lehman scale: • 10% on the first $1M of sale price • 8% on the next $1M ($1-2M) • 6% on the next $1M ($2-3M) • 4% on the next $1M ($3-4M) • 2% on everything above $4M So on an $8M sale that’s: $100K + $80K + $60K + $40K + $80K = $360,000 On a $10M sale: $100K + $80K + $60K + $40K + $120K = $400,000 Plus there’s a minimum fee of like $150K regardless. And I still have to pay for the QoE out of pocket ($15-25K), my own M&A attorney ($15-30K), and accounting prep. So all-in I’m looking at potentially $400-450K+ in fees to sell my own business. That I built. Over 8 years. By myself. I’m not saying they don’t add value. The broker I talked to clearly knows the space and has real buyer relationships. But I keep doing the math and $400K buys a LOT of attorney hours, a great QoE, and probably a solid M&A consultant on an hourly basis. For those who’ve been through this — does this fee structure seem standard? Is there room to negotiate? And is there ANY option between “pay $400K for full service” and “do literally everything yourself”? I feel like there has to be a middle ground that doesn’t exist yet.

Top comments (10)

[score=1] AutoModerator

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[score=62] JaySuds

Your legal fees will likely be closer to $100K on a $8-10mm deal. Who pays for QoE is negotiable. Typically the buyer will pay but they get to select their own. At that size exit you could talk to some lower middle market investment bankers. But it will all likely net out about the same. I paid a flat 4% on a similar deal. The real value of a broker or banker is keeping the deal together and acting as a buffer between you and the buyer. Due diligence and negotiating the asset purchase agreement and other docs is incredibly stressful and time consuming. Having someone who’s done a ton of deals in your corner is essential. Your lawyer gets paid even if the deal falls apart at the 11th hour. It’s their job to flag all the risks, not get the deal over the finish line.

[score=20] hawkish25

A couple of things to consider: 1. Your business may or may not sell. Everybody else saying there’s a usually a retainer is precisely because a good chunk of the time, deals fall through. So brokers price their deals so the successful ones cover their costs (salaries, bonus, systems) plus the time spent on the failed ones. 2. You’re buying time and effort. Obviously there are good and bad brokers out there. But they will coordinate with the lawyer, the DD consultants, the buyers obviously. Time that otherwise you may be distracted from your business. What that is worth is up to you. 3. 15-30k legal fees on a sale seems very low. And lawyers is the last thing you want to skimp on in a life changing transaction.

[score=25] schlunt

That is a fair and good deal.

[score=10] nasajd

Some business brokers will offer an initial retainer, then hourly in set blocks to provide an agreed list of services. This will generally not include a guarantee of selling the business. The option you were presented is fairly common and passes along certain risks to the broker in that they are providing substantial service without a guarantee of being paid unless you successfully sell.

[score=7] saintspike

I’m biased, so take my advice with a grain of salt, but I’ve never gotten the sense that SMB brokers are worth what they charge. An M&A consultant would do this at an hourly rate for much less, with the caveat that they’d be fix fee and not based on success. So, really, you’re being charged for the risk of the deal not going through. And contrary to what anyone else said, your QoE is your responsibility. Providing one helps you sell. Waiting on a buyer to do their own can be done, but it relies on a sophisticated buyer who will likely use your lack of prep against you.

[score=4] Hopefully_Witty

The minimum up front fee is a bit egregious. Some brokers take a retainer, some are completely success fee driven. The QoE, in my opinion, should be on the buyer. They likely wouldnt accept your QoE or it could be out of date range for them anyways, so they'd have to get one done regardless, and would have to pay for it on their end. The attorney fees sound about right depending on the type of sale and complexity of the purchase docs (stock sale vs asset purchase). (Not a pitch) For example, our brokerage does not do a retainer. We're success fee driven, so our commissions are a little higher (12%, 10%, 8%, 6%, 4%), but we don't charge a retainer. We make our money if we're able to sell the business. We have our own opinion of value report that does a bit of the financial due diligence that a QoE would do, just to make sure there aren't any surprises. It's in compliance with typical certified appraisals that lenders order, but not a full blown QoE.

[score=5] aliph

QoE for $15-25k and M&A attorney for $15-30k? No way either are that low.

[score=5] gonna-getcha

"So all-in I’m looking at potentially $400-450K+ in fees to sell my own business. That I built. Over 8 years. By myself." You're making it sound like the broker should make less on a transaction if it involves an owner who built the biz him/herself?

[score=7] the-BBC-news

5% seems totally reasonable for a competent broker. A good value even. This is the first biz you’ve sold, right? So why wouldn’t you want to work with someone who’s been through the process dozens of times and seen every possible thing to watch out for so you get the best advice, the smoothest process, and the highest sale price? Attorney fees look low for a sale that size/complexity.