For third party buyers (strategic or financial) and for companies with a valuation of $10MM (or less), a business broker's commission is likely to be a key cost factor to consider.
According to bizbuysell "The most common business broker commission range is 10% - 15% for businesses sold between $100,000 to $1,000,000. If the business is sold for less than $100,000, you often see a flat fee payment no matter the price. For example, a $10,000 or $15,000 commission is agreed on for a business valued at $95,000. If the business price is over $1,000,000, the client could negotiate ten percent on the first $1,000,000 and eight percent on anything above that."
According to the National Center for Employee Ownership, pertaining to ESOP transactions, "For most closely held companies, transactions cost between $150,000 and $400,000, with some larger and more complex transactions priced significantly higher. Fees include feasibility studies ($10,000 to $40,000), plan documentation ($20,000 to $50,000), valuation ($15,000 to $25,000), trustee fees if using an outside trustee ($25,000 to $70,000 in most deals but much more in larger deals), plus any corporate legal fees and personal financial advisor fees for seller."
According to the Ohio Employee Ownership Center, a worker co-op conversion can run from $25,000 to $70,000 from the totals of attorney fees ($10,000 to $30,000), valuation ($5,000 to $15,000) and other professionals ($10,000 to $25,000).
And finally, according to Employee Ownership Law, an EOT should cost $50,000 to install and roughly $5,000 annually thereafter. The range for businesses on the smaller end tends to be $50,000 to $100,000 in initial transition cost which is broken down across: $15k to $30k in legal costs, $5k for CPA, $30k to $80 in overall support. Furthermore, the ongoing administrative fees are typically $25k. Separately, the state of Colorado offers a reimbursement of 50% of transaction costs that are capped at $80,000.