Hi - we are frequently buying webhosting companies and have from time to time gone through brokers hired by the seller.

Recently I found a broker based in USA who represented a number of webhosting companies for sale.

I was a bit surprised to hear that he expected me, the buyer, to pay him x% of the agreed price. One of the companies we are looking at through this dealer is doing XXmillions in turnover pr year, so x% of what ever multiple that we might end up at is a lot of money, and I expect that he gets a similar amount from the seller.

I may be willing to do so, if its the right deal. But it's a procedure I haven't met before. Is it common practice in US? And if so, what is the usual % the buyer pais?

Thanks for your input.

:)

I have come across it before, But I have to say that I don't like it all , I would like it even less if I was dealing with those kind of numbers. The one I dealt with was 3% , I have heard as much as 15% from others.

Just wanted to say well done for "turning around" uk2.net , I just wish you did colocation.

I have come across it before, But I have to say that I don't like it all
Same here, it does not feel fair I would like it even less if I was dealing with those kind of numbers. The one I dealt with was 3% , I have heard as much as 15% from others.

15%? - thats quite a chunk...

Just wanted to say well done for "turning around" uk2.net , I just wish you did colocation.

thanks, it's not rocket science though ... oh, and we are actually looking into providing colo again :)

Many Auctioneers charge a buyers and sellers commission on items sold, so I don't think it is unreasonable for brokers to do so. Especially as it **should** mean that each pays a lower percentage than if just one were charged.

What do they do to earn their percentage? Do they offer you any kind of protection on the purchase?

On larger purchases it may be worth either negotiating a fixed fee with the broker or a slightly lower price from the seller as I am sure most sellers would not want to lose out on a sale just because of the brokers fee.

Same here, it does not feel fair

15%? - thats quite a chunk...

thanks, it's not rocket science though ... oh, and we are actually looking into providing colo again :)#

If I remember correctly though the 15% was from both the buyer and seller , 7.5% each . That service did offer some " after care " for both buyer and seller.

I Really Hope you do provide colo , as one uk company to another, We would love some other options about from redbus and bluesquare.