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what is a reasonable finders fee for a broker who put me in contact with a seller? Is it Lehman's formula for

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Answers (3)
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Freedom Business Brokers
Orange County, CA

Although the question is incomplete as to the details of finding a seller yet it depends on your negotiation
with the broker.There is no prevalent customary set fees for finders.You can offer a lump sum of $1000
to $5000 depending on the size of the business.

Nov 24, 2010
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Chimera Strategies
Founder and Managing Partner
Nassau County, NY

As a business broker based in New York, I would say it depends. If the business broker is representing you than the double Lehman scale is appropriate. As a broker, I would also pay 10% of gross fee to a person who found me a seller and 5% of gross fee to a person who found me a buyer.

Gary Kane

Nov 23, 2010
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The BAF Group LLC

Joseph, that is not a reasonable question - there is not sufficient information to give you an intelligent answer. Is it the Listing Broker? Is the Broker YOUR Broker, as a Buyer's Representative? Is the Broker just introducing you and walking away? Is s/he doing any search activities for you? Are you expecting YOUR Broker to represent you in other ways, such as research into the due diligence process, negotiating pricing and terms, arranging for settlements...

Also realize that all fees are between Broker and his/her Client, and some are highly negotiable. Even if I were to give you an answer, it would be based on MY Brokerage and MY fee arrangement; that does not mean that MY answer would necessarily be adhered to by other Brokers. You are much better off in going to several Brokers that come highly recommended and asking them individually, rather than asking for that kind of information on a public bulletin board. You would simply get a better set of answers, doing it the other way.

Nov 16, 2010