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do i need to pay any commission to broker if i want to buy a biz

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Answers (3)
Robert Cutler
Attorney
New York County, NY

The answer is almost always no unless you hire a buyer's broker, although in a few rare circumstances the seller will ask the buyer to split the broker's commission, but these deals almost always involve real estate. I would highly recommend hiring a buyer's broker, however, as they can be extremely helpful both in finding opportunities and as a resource in doing your diligence review of the business.

Feb 2, 2010
Chuck Woolweaver
FranchiseConsulting.Net
Franchise Your Business in 60 Days
Palm Beach County, FL

In Florida, if you are a member of the Business Brokers of Florida MLS, then you are required to split commissions, therefore the seller pays both sides. Some brokers that are not members of the BBF will still split commissions, some won't.

Feb 2, 2010
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The BAF Group LLC
MD

Normally, a Business Broker works for the Seller. Most Brokers do not split their commissions, the way Residential Real Estate Agents do; therefore, using a Broker to REPRESENT YOUR INTERESTS can often involve you paying that Broker.

We frequently work for the Buyer. In most cases, our Clients are Corporations, and they normally - but not always - pay any fees associated with the work we do for them, for this reason. Sometimes, we can work for individual Buyers; when we do, we make certain they know they can end up paying our fees. We know a number of Brokers that will share their commissions with us, and we try to work with them. When we find a listing where the Broker will not split commissions, we let the Buyer know and give him/her the option of paying our fee if he/she makes that purchase, or not going after that listing, at all. You need to have that kind of understanding with your Broker, if you use one to make your purchase.

Feb 2, 2010

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