How much do business brokers charge in Texas?
Typical Texas business broker fees explained: success-fee percentages, minimum fees, upfront retainers, buy-side fees, and how to compare brokers before you sign.
Most Texas business brokers charge a success fee of roughly 10% to 12% of the sale price on Main Street deals, paid at closing, and many large brokerages set a minimum fee of $20,000 or more. Delta Brokers charges a flat 10% sell-side fee with a $10,000 minimum, no upfront retainer, and no monthly work fee. Buy-side representation is 5%, also paid only at closing.
The success fee
The success fee is a percentage of total consideration, earned only when the deal closes. On smaller businesses it is usually a flat percentage. Some advisors on larger deals use a tiered schedule (often called a Lehman or double Lehman formula) where the rate steps down as the price rises. A flat rate is simpler to understand and easier to compare.
Minimum fees
Minimum fees matter most on smaller sales. A $20,000 minimum on a $150,000 sale is more than 13% of the price. Our $10,000 minimum keeps smaller businesses affordable to sell.
Upfront and monthly fees
Some brokers ask for an upfront retainer or a monthly work fee before a buyer is ever found. Ask whether those fees are credited against the success fee, and whether they are refundable. Delta Brokers charges neither.
Buy-side fees
Few brokers represent buyers at all. When they do, the fee is usually a smaller percentage of transaction value, paid by the buyer at closing. Ours is 5%.
What to ask before you sign
Ask for the rate, the minimum, any upfront or monthly fees, the length of the listing term, the tail period on introduced buyers, and what happens if you find the buyer yourself. Every answer should be in the engagement letter.