The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

WHEN SELLING A WHOLSALE BUSINESS, IS THE COMMISSION CHARGED ON THE INVENTORY.

Eric Feldman

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., "www.mywebsite.com"

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
Answers (4)
No User Photo
CME Appraisals, LLC
Business and Certified Machinery and Equipment Appraisals
Charleston County, SC
Premium Broker

Generally speaking, commission is charged on the final sales price of a business (including inventory). Brokers should be able to provide services and a higher return that more than justify the commission spent. Most business brokers will not engage a listing/sale that divides the commission. There is just too much work and too many issues associated with selling a business to justify otherwise.

I hope this helps.
S. Simmons/Charleston, SC
Business Broker, Appraiser and Business Analyst
Q:' 843.813.8792

Jul 8, 2009
No User Photo
The BAF Group LLC
MD

As with every question about commissions, ALL COMMISSIONS ARE NEGOTIATED between the Seller and the Broker. It depends upon the Broker, and a lot of other issues. We do not charge a commission on MOST businesses. There are even exceptions within our own program.

Jul 4, 2009
Troy Frank
VR Business Brokers / Mergers & Acquisit
IN
Premium Broker

Eric,

We consider the inventory as part of the selling price and therefore apply the commission. Inventory is part of the business the same way as equipment and goodwill are.

Jul 4, 2009
Salvatore B. Urso
Florida Business Acquisitions, Co.
FL

Erick, we do charge on the inventory, but some Sellers may dispute this; if they do, I would offer a compromise.

Jul 3, 2009

Start a Discussion