When founders think about selling their business, the first question is often, “How much will I get?” But a better early question might be, “What will it cost me to sell?”
Selling a business comes with a range of costs that aren’t always discussed. Depending on the size of the deal, transaction costs typically fall between 1.5% and 5% of the total value. For larger deals, the percentage may be lower, but the dollar amount can still be significant.
Key contributors to these costs include:
Transaction advisors: Usually compensated as a percentage of the sale price.
Legal fees: High-quality M&A counsel is necessary and often expensive.
Accounting and tax support: Buyers want clean, reliable financials.
Additional consultants: Specialists may be brought in for diligence or post-sale planning.
The real takeaway is this: these aren’t “nice-to-haves.” They’re essential services that protect the deal and ensure you walk away with the outcome you intended. Understanding and planning for these costs early can help avoid surprises and allow you to enter the process with clarity.
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