The short answer
A business broker prices your business, finds and screens buyers, and helps you get to a closing. Most charge a fee to start and a commission when the sale closes. BDC puts that commission at around 12% for sales under $1 million, falling to 4% to 6% on a $10 million sale.
No upfront fees to sell. Our fee is paid at closing.
Get my free sale plan
Plenty of owners will meet one soon: 38 in 100 Canadian businesses that plan to sell within ten years expect to consult a professional, such as a broker. Here is what that help looks like, what it costs, and what to ask before you sign anything.
What a business broker does
The seller usually hires the broker, and the broker is paid out of the sale. BDC lists the work:
- Values the business and studies the market for it.
- Markets it to buyers.
- Screens the enquiries and qualifies the buyers.
- Helps with negotiations and shapes the offers.
- Supports the closing.
Businesses earning more than about $1 million a year before interest, tax and depreciation often go to a merger and acquisition advisor instead, BDC says. For most small businesses, a broker is the usual route.
What a business broker costs
| A fee to start | Many brokers charge an initial fee to launch the sale. BDC gives no typical amount, so ask for it in writing, and ask whether it comes off the commission at closing.BDC |
|---|---|
| The commission | Paid when the sale closes, as a share of the price: typically around 12% for sales under $1 million, and often 4% to 6% on a $10 million sale. The share falls as the price rises.BDC |
| A worked example | On a $600,000 sale, a 12% commission is $72,000, paid out of the proceeds at closing.Our arithmetic on BDC's figure |
| At tax time | Brokers' fees and commissions are among the selling costs that reduce a capital gain. Your accountant tells you how that applies to your sale.Canada Revenue Agency, Capital Gains guide |
A free sale plan first: see what your business could sell for, and exactly how we would sell it.
Get my free sale planDoes a business broker need a licence in BC or Alberta?
Not to sell the business itself. Neither province licenses business brokers as such. The lease or land part of a sale is different: it is real estate work, so whoever handles it for you needs a real estate licence. That is why a licensed commercial realtor handles that part of our deals.
If a broker you're talking to holds a real estate licence, ask whether the provincial rules for that licence cover your whole sale, or only the lease or land in it.
Questions to ask before you sign with anyone
- What do I pay before the business sells, and does any of it come off the fee at closing?
- What is the commission, and is there a minimum fee, whatever the price?
- How long does the agreement run, and how do I end it?
- Do I owe a fee if a buyer you introduced closes after the agreement ends, and for how long?
- Who are your buyers, and how do they find out about my business?
- How does my name stay private until a buyer has signed a confidentiality agreement?
- Who decides on offers? The answer should be you.
How Succession Market works
We help owners navigate the sale of their business. Here is how that compares:
- No upfront fees to sell. Our fee is paid at closing.
- A free sale plan first: see what your business could sell for, and exactly how we would sell it.
- Registered buyers see each new business seven days before the public, in our Buyers Market Club.
- Nobody learns who you are until they sign our confidentiality agreement.
- You make every decision: which offer, what terms, and when.
Your lawyer papers the deal and your accountant advises on tax. Both are yours to choose.
Questions owners ask
Do I have to use a business broker to sell?
Who pays the broker?
How much is the fee to start?
Can I deduct the broker's fee?
See what your business could sell for, and exactly how we would sell it, with a free sale plan.
Get my free sale planOr call us at 778-760-8081. A Senior Deal Advisor calls you next.
Sources
- What a broker does and charges: BDC, "How to find a business to buy with the help of a broker".
- When an M&A advisor fits better: BDC, "How to find the right buyer for your business".
- Owners who expect to consult a professional: Statistics Canada, Canadian Survey on Business Conditions, third quarter 2026 (38.4% of businesses planning to sell within ten years).
- Selling costs at tax time: Canada Revenue Agency, guide T4037, Capital Gains.
- Licences: BC Financial Services Authority, "Sale of a Business" guideline; Real Estate Council of Alberta, Business Brokerage bulletin.
Who publishes this
Succession Market publishes this guide from Kelowna, British Columbia. It is general information, not tax or legal advice for a particular sale. Updated 29 October 2026.