how much should I pay a business broker representing the buyer?

Question

I've been advised against paying a percentage of the purchase prices since it should take no more effort/involvement in negotiating a 10 million dollar business than a 100 thousand dollar one.

Are there common structures based on amount of time involved?

Per task involved (LOI, Valuation, other aspects of due dilligence)?

Answer 1

Based on agreed % of sales price( btw 3-8% depending on deal)....ask for a copy of the buyer-broker contract and it should spell out the broker's fee structure.