{"ok":true,"canonical_url":"https://dealroom.so/glossary/tiered-fee-structure","api_url":"https://dealroom.so/api/public/glossary/tiered-fee-structure","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"tiered-fee-structure","term":"Tiered fee structure","group":"Doing the deal","definition":"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":"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.","url":"https://dealroom.so/glossary/tiered-fee-structure","official_sources":[],"related":[{"slug":"business-broker","term":"Business broker","url":"https://dealroom.so/glossary/business-broker"},{"slug":"ma-advisor","term":"M&A advisor","url":"https://dealroom.so/glossary/ma-advisor"},{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"},{"slug":"packaging-fee","term":"Packaging fee","url":"https://dealroom.so/glossary/packaging-fee"}],"related_questions":[{"question":"How does the purchase agreement structure affect an SBA partner buyout?","url":"https://dealroom.so/sba-7a/questions/how-does-the-purchase-agreement-structure-affect-an-sba-partner-buyout"},{"question":"Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?","url":"https://dealroom.so/sba-7a/questions/are-there-any-other-lender-specific-fees-beyond-the-sba-guaranty-fee-and-ongoing-servicing"},{"question":"Can I change my business structure after getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-i-change-my-business-structure-after-getting-an-sba-7-a-loan"},{"question":"What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-purpose-of-the-annual-service-fee-on-going-guaranty-fee-for-an-sba-7-a-loan"},{"question":"How does seller financing structure impact the required equity injection for a business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-seller-financing-structure-impact-the-required-equity-injection-for-a-business-ac"},{"question":"What is the typical range for the SBA 7(a) loan processing fee (upfront guaranty fee) for an acquisition loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-range-for-the-sba-7-a-loan-processing-fee-upfront-guaranty-fee-for-an-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Tiered fee structure","url":"https://dealroom.so/glossary/tiered-fee-structure","source_type":"DealRoom Data"}}