The Lurker said:
Don't business brokers charge 10% on the transaction value and you still need an attorney, CPA and other professionals to transact and advise on the sale?
I met with one before and seemed like total sham given the cost. Said even if a buyer/seller was already lined up they would still charge 10% to consult. I'm sure they serve a purpose but I left than meeting skeptical.
On deals we have been on (buy side) the selling broker fees can vary and are usually sliding scale based on something like the old Lehman formula. So maybe 10% for first $1MM of purchase price, 8% for the next, 6% for next, then down to 1% with all additional with maybe a cap.
And on whether they are a sham or not, like any professional services offering there are great ones who we have loved working with and brought real, tangible value to their sell-side clients and helped get the deal done on structure, earn-out negotiations, as well as help on operational and financial due diligence. Others have been absolutely worthless and waste of everyone's time and money.