What a business broker actually does.
A good broker earns their fee three ways: they find buyers you couldn't reach, they keep the sale confidential while marketing it, and they hold deals together through the emotional weeks between offer and close. For a main-street business with many possible buyers, that service has real value.
Chicago has no shortage of options: national franchise networks with local offices, independent M&A boutiques, and solo intermediaries. What almost none of them do is fix the things that decide your multiple before the business is shown to a single buyer: the quality of your books, the transferability of your operations, and how much of the company still lives in your head. A broker markets the business you have today. That's the job. It's just not the whole job.
What brokers charge in the Chicago market.
8–12% commission
For businesses selling under roughly $2M, expect a success fee of 8 to 12 percent of the sale price, with minimum fees commonly $10,000 to $25,000 regardless of size.
Sliding scales
Above roughly $2M, fees typically follow sliding formulas such as the Double Lehman: 10% of the first million, 8% of the second, stepping down thereafter. Net effect: roughly 4 to 8 percent.
Upfront & tail fees
Many firms add upfront valuation or marketing fees, and nearly all listing agreements carry a 12–24 month tail: sell to a buyer they introduced, even after the agreement ends, and the commission is still owed.
None of this is a scandal. It's how the model works. The commission model simply has one built-in tilt an owner should see clearly: the broker is paid to get a deal closed, not to spend a year making your business worth 30 percent more first. On a $3M sale, that difference dwarfs every fee in this table.
Ten questions to ask any Chicago broker.
- What did you personally close in the last 24 months? Office-wide numbers hide individual track records. Ask for deals like yours: your size, your industry, your county.
- What's your total fee, in writing? Commission percentage, minimum fee, upfront charges, marketing costs, and what happens to any deposit if the business doesn't sell.
- How long is the exclusive, and what does the tail clause say? Ask for the tail period, and for named carve-outs for any buyer you already know.
- How did you arrive at the listing price? A price without a defensible valuation method behind it is bait. Ask what evidence will support it in diligence.
- Who actually does the work? The person pitching you may not be the person answering buyer calls in month four.
- How many active listings do you carry right now? Forty listings per agent means your file gets marketing, not attention.
- How will you keep this confidential? Blind profiles, buyer vetting, NDAs before financials. Ask to see the actual process.
- What happens when diligence finds a problem? The honest answer involves preparation they should have recommended before listing. Listen for it.
- Will you coordinate with my CPA and attorney, or around them? Deals die in the gaps between advisors who never talk.
- What would make my business worth more a year from now? The most revealing question on the list. A pro has a real answer. A listing machine changes the subject.
When a broker is exactly the right call.
A restaurant, a retail store, a service business under a million dollars with clean books and an owner ready to leave: list it with a competent broker and let the network do its work. Marketed sales exist because they solve a real problem: finding buyers.
The calculus changes for companies doing $1M to $15M in revenue. At that size, buyers are more sophisticated, diligence is more invasive, and price is decided less by marketing reach than by what the buyer's accountants find in your numbers. Owners in that range usually lose more value to unpreparedness than they could ever gain from a wider buyer list. That's the gap this firm was built for.
Chicago broker questions, answered.
How much do business brokers charge in Chicago?
Most charge a success commission of roughly 8 to 12 percent for main-street businesses, often with a $10,000 to $25,000 minimum. Larger deals price on sliding scales like the Double Lehman formula, netting roughly 4 to 8 percent. Add upfront or monthly marketing fees at many firms. Get every fee in writing before signing.
Should I use a business broker to sell my business?
If you need buyers found and a confidential marketed sale run, a good broker earns the fee. If your business isn't diligence-ready, if you already know your buyer, or if the value problem lives in your books and operations, preparation usually pays better than listing sooner. Many owners do both, in that order.
What's the difference between a business broker and an M&A advisor?
Brokers typically run commission-based marketed sales for main-street businesses; M&A advisors run structured processes for larger companies. In between sits the $1M–$15M range, where owners usually need financial preparation and deal support more than a listing.
Do I need a broker if I already have a buyer?
Usually not. With a buyer in hand you need preparation and deal support: defensible financials, a realistic price backed by evidence, diligence management, and a coordinated attorney and CPA team. Be careful signing an exclusive listing after a buyer has already approached you.
How long do listing agreements last?
Typically 6 to 12 months exclusive, plus a tail of 12 to 24 months during which commission is still owed on buyers the broker introduced. Read the tail clause. Negotiate carve-outs for buyers you already know, by name, in writing.
What should I do before talking to any broker?
Get buyer-ready first: clean, GAAP-ready statements, a documented add-back schedule, and a realistic value range. You'll negotiate from evidence instead of hope, and you'll be able to judge any broker's listing price against reality. That preparation is exactly what our $4,500 Exit-Readiness Review produces in two weeks.
More owner questions answered on the Owner FAQ, including what selling costs all-in and how businesses like yours are valued.