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who usually pays the broker's fee when buying a business, the buyer or the seller??

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Answers (2)
Aron Culver
BTI Group / Business Team
CA

The seller typically pays, not always, but most of the time. However, if you think about it, both the buyer and seller pay as it is part of the overall transaction price and even if the seller is paying, he/she is calculating that, somehow, into the price and, if the buyer is the one to pay, it is also going to be calculated into the overall purchase. Either way, both parties are factoring it into the equation somehow.

May 4, 2009
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The BAF Group LLC
MD

That depends; USUALLY, the Broker is contracted by the Seller, and since he/she is representing the Seller, the Broker is normally paid by that person or entity. However, there are some instances where we are contracted and therefore paid by the Buyer. We are doing a fairly large project right now, where we are working for such a Buyer who is attempting to grow his Company via acquisition. If you are a Buyer, always assume the Broker works for the Seller, until and unless he/she provides you with documentation in writing.

May 4, 2009

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