How Much Does a Business Broker Charge in NZ? Fees Explained

# How Much Does a Business Broker Charge in NZ? Fees Explained

If you're buying or selling a business in New Zealand, you've probably wondered: how much does a business broker actually charge, and is it worth it?

Business broker fees in NZ are one of those topics where everyone has an opinion but few people share hard numbers. In this guide, we lay it all out transparently.

Typical Business Broker Commission Rates in NZ

In New Zealand, business broker commission rates typically range from 8% to 12% of the final sale price, with 10% being the most common rate for small-to-medium businesses.

Commission Rate Breakdown by Business Size

Sale Price	Typical Commission	Broker Earns
Under $100,000	10–12% (or minimum fee)	$10,000–$12,000
$100,000 – $300,000	10%	$10,000–$30,000
$300,000 – $500,000	8–10%	$24,000–$50,000
$500,000 – $1,000,000	7–10%	$35,000–$100,000
$1,000,000+	5–8% (often negotiated)	$50,000–$80,000+

Most brokers also have a minimum commission — typically $10,000–$15,000. This means even if you sell a $50,000 business, you'll still pay the minimum.

GST on Broker Fees

Business broker commissions are subject to 15% GST. So a 10% commission on a $300,000 sale is $30,000 + $4,500 GST = $34,500 total. If you're GST-registered, you can claim the GST back as an input tax credit.

Fee Structures: Commission-Only vs Hybrid

Commission-Only (Most Common)

The broker charges nothing upfront. They only get paid when the business sells. This is the standard model and aligns the broker's incentive with yours — they earn nothing unless they find a buyer.

Pros:

No upfront cost
Broker is motivated to sell
If they can't sell, you owe nothing

Cons:

Higher commission rate (to compensate for the risk)
Broker may focus on easier-to-sell listings
If the business is hard to sell, the broker may not invest much effort

Hybrid Model (Upfront Fee + Lower Commission)

Some brokers charge a smaller upfront fee ($2,000–$5,000) to cover marketing and listing costs, combined with a lower commission on sale (e.g., 6–8%).

Pros:

Lower commission rate
Broker covers marketing costs from the upfront fee
Shows seller commitment (broker invests more effort)

Cons:

You pay regardless of whether the business sells
Risk of losing the upfront fee if the engagement doesn't work out

Fixed Fee / Flat Rate

A small number of brokers (and online platforms) charge a flat fee regardless of sale price. This is less common for full-service brokerage but is emerging in the market.

What Does a Business Broker Actually Do?

For that 8–12%, here's what a good broker provides:

1. Valuation and Pricing - Assess the business value using SDE multiples, asset-based, or comparable sales methods - Advise on a realistic listing price - Prepare a pricing strategy (fixed price, price range, or negotiable)

2. Preparation and Documentation - Prepare a comprehensive Information Memorandum (IM) - Recast financial statements to show SDE - Gather and organise all sale documents (lease, staff contracts, asset list) - Professional photography and listing copywriting

3. Marketing and Advertising - List on major platforms (TradeMe Business, NZBizBuySell, and potentially OpenBiz) - Confidential marketing to their buyer database - Social media and email marketing - Handle all buyer enquiries and qualify leads

4. Buyer Management - Screen and qualify potential buyers (financial capacity, experience) - Manage confidentiality agreements (NDAs) - Coordinate site visits and meetings - Negotiate on your behalf

5. Deal Management - Facilitate the Sale and Purchase Agreement - Coordinate with lawyers, accountants, and valuers - Manage due diligence process - Assist with settlement and transition

When Should You Use a Broker?

Use a Broker If: - Your business is worth over $200,000 — the complexity justifies the cost - You're time-poor and can't manage the sale while running the business - You want confidentiality — brokers handle enquiries without revealing the business identity upfront - You need help with pricing — getting the price right is critical - You want access to a buyer network — established brokers have databases of qualified buyers

Consider Selling Without a Broker If: - Your business is small (under $100,000) and the minimum commission feels disproportionate - You already have a buyer in mind (employee, family, competitor) - You're comfortable with marketing, negotiation, and legal processes - You want to save on commission and are willing to invest your own time

The DIY + Platform Approach

An increasingly popular option is to list your business yourself on platforms like OpenBiz (free listing) and handle the initial marketing, while engaging a lawyer and accountant for the transactional elements. This can save you $15,000–$50,000+ in broker commissions while still getting professional support where it matters most.

How to Choose a Good Broker

If you decide to use a broker, here's what to look for:

Industry experience — do they specialise in your type of business?
Track record — how many businesses have they sold in the last 12 months?
Marketing plan — what specific platforms and methods will they use?
References — ask to speak with past clients
Communication — how often will they update you?
Sole agency vs general listing — sole agency gives the broker exclusivity (they work harder) but locks you in
Contract term — typically 6-12 months; avoid very long exclusive agreements

Questions to Ask a Broker Before Signing

What is your commission rate, and is it negotiable?
Is there a minimum fee?
What upfront costs will I incur?
How will you market my business?
What is your average time to sell?
Can I see examples of your Information Memorandums?
What happens if I want to cancel the agreement?

Negotiating Broker Fees

Broker fees are not fixed by law — they are negotiable. Here are some strategies:

Higher-value businesses give you more leverage to negotiate a lower percentage
Offer exclusivity in exchange for a lower rate
Ask about tiered commissions — e.g., 8% on the first $500k and 5% above that
Compare multiple brokers — get quotes from 2-3 before committing
Performance bonuses — offer a higher rate if they exceed your target price

Summary

Business brokers in NZ typically charge 8-12% commission, with 10% being the most common for small-to-medium businesses. Whether a broker is worth the cost depends on the complexity of the sale, your available time, and the value of your business.

For smaller businesses or confident sellers, listing directly on platforms like OpenBiz — where listing is free — can save thousands while still reaching a wide audience of buyers. For larger or more complex sales, a good broker earns their commission by managing the process professionally and maximising your sale price.