Retainers & Fees

At P+S Business Brokers Melbourne we will only take on assignments if both parties agree to a the approach, methodology, realistic values and reliable financial information.

Our success fees are normally based on Goodwill / Plant & Equipment & Stock, however in some cases we will quote a set fee. All fees noted here are provided as a guide only. Your broker will discuss and agree all fees with you before you make any commitment.

Business Brokers Melbourne Sales Fees

P+S structures fees based on the anticipated total selling price of the business. A percentage of the ultimate selling price is charged. The percentage is negotiable and determined by the size of the transaction, its complexity and the overall input anticipated by P+S.

The total sell price is the price that the business is sold for including stock, and plant & equipment and includes any deferred payments.

Sale Commissions Guide*

Total Sale Price Retainer Fee
Minimum  Up to $150,000 $2,500.00 + GST Fixed:  $12,500.00 + GST
$150,001 $500,000.00 $3,500 .00 +GST 8% + GST
$500,001 $1 million $4,500 .00 + GST 8% + GST
$1 million $2 million $6,500 .00 + GST 8% + GST
$2 million $5 million $8,500 .00 + GST 5.5% +GST
$5 million $10 million $10,500 .00 + GST 5.5% + GST
$10 million + $15,000 .00 + GST 5.5% +GST

* Please note all fees are negotiable

 

Buyer Agency Fees

Following your direction and guidelines P+S will confirm the fee structure prior to accepting an engagement. For buyers advocacy the fee may be based on the size of the business, on a fixed or monthly fee. The following table is intended as a guide only:

Revenue

Retainer

Fee

Up to $1 million

$4,000

$40,000

$1 to $3 million

$7,000

4%

Up to $5 million

$10,000.00

3.5%

$5 million – $10 million

$20,000.00

2.5%

$10 million +

$30,000.00

2%

 


Appraisals and Valuations

 

P+S appraise the market value of all businesses we are engaged to sell. The cost of this service is included in the fees agreed at that time.

Valuations for strategic, dispute, legal or restructuring purposes are conducted by P+S under the control of Larry Green. Larry is a Registered Business Valuer and has the experience and knowledge to prepare both Limited Scope and Full Valuations on businesses of all types and sizes.

The following fees and terms are provided as a guide only:

 

Turnover of Business

Fee

Under $2,000,000

$2,500 + gst

$2,000,000 to $5,000,000

$4,500 +gst

Over $5,000,000

$6,500 + gst

 

Business Advisory Fees

P+S provides a strategic approach to assessing the potential value of a business and advise on actions to establish that value. This involves risk mitigation analysis, frequently involving specialist lawyers and accountants, strategic analysis on the business operations and markets. As each project will vary considerably it is difficult to establish fee guidelines. We will be pleased to provide an obligation free indication and proposal.

 

Engagement & Advertising Costs

Immediate Engagement Costs:

$1,500 – $3000 + GST depending on the size of the business

  • Photography
  • Preparation of Profile Brochure
  • Preparation of Information Memorandum
  • Preparation of Advertising Content
  • Websites upload and costs (typically 6)*
  • Emails to Network database
  • Emails to buyer database as applicable.

*Enhanced website listings are available. Discuss with your broker.

Note: The use of virtual electronic data rooms and research resources may be recommended. These will be highlighted when applicable.

 

Direct Marketing Costs

  • Direct marketing costs are developed for each project
  • Typically:
    • Database: $220 per 1000
    • Postage + Material $0.60 ea.
  • Admin $25 per hour

Call: (03) 9005 0944 for a confidential discussion