Glossary · Doing the deal
Tiered fee structure
In short
This describes a fee arrangement where the percentage charged changes based on the size or value of the transaction. For example, a business broker might charge a higher percentage on the first portion of the sale price and a lower percentage on amounts above that.
What it means in a deal
When hiring M&A advisors or business brokers, you might encounter a tiered fee structure for their commission. Understand how these tiers work as they can significantly impact your total closing costs. Negotiate these fees upfront and ensure they are clearly outlined in your engagement agreement.
Related terms
Common questions about Tiered fee structure
- How does the purchase agreement structure affect an SBA partner buyout?
- Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?
- Can I change my business structure after getting an SBA 7(a) loan?
- What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?
- How does seller financing structure impact the required equity injection for a business acquisition?
- What is the typical range for the SBA 7(a) loan processing fee (upfront guaranty fee) for an acquisition loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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