Do buyers pay broker fees?

Whether you pay a broker fee as a buyer depends on which broker you are talking about. The seller’s broker and a buyer’s own advisor, if they hire one, are typically paid by different parties under separate agreements, and it is worth being clear on which is which early on.

Who typically pays the listing broker

The broker who lists a business for sale is engaged and paid by the seller, usually out of the proceeds at closing under the listing agreement. A buyer responding to that listing does not generally pay that broker anything directly, even though the broker is the one showing them the opportunity.

Buy-side representation and its cost

A buyer can separately engage their own advisor to search for opportunities, evaluate them, and negotiate on their behalf, and that advisor is paid by the buyer under terms the two of them agree. This is a different relationship entirely from the seller’s broker, even if both are called a business broker.

Why this affects the price you offer

Because the seller’s broker fee typically comes out of proceeds, it can factor into how a seller thinks about their net price, though that is the seller’s calculation, not the buyer’s. A buyer with their own paid advisor is separately weighing that cost against the value the advisor adds to the search and negotiation.

Ask early who is being paid by whom

Before you get deep into a deal, ask any broker you are dealing with who engaged them and who pays their fee. This tells you whose interests they are working for and whether you should expect any bill of your own at any point in the process.