M&A Advisory Fee Structure
The table below provides average fees as expressed by EBITDA.

M&A Advisory Fee Break Down

Different fee types used and explanations as to how they work in an M&A advisory relationship.

Retainer Fees

Fixed amounts charged up-front to ensure that the owner is committed to the process. As the advisory firm does its work, the retainer is drawn down.

Success Fees

Fees paid to the selling firm upon closing. May be fixed, flat percentage, scaled, or reverse scaled. There are two types of success fees.

Fixed Fee

A success fee in the form of a predefined dollar amount, distributed at closing. Often used in deals that require minimal work to close.

Flat % Fee

A success fee in the form of a percentage of the company’s enterprise value upon closing.

Success fees can also be presented as “scaled” and “reverse scaled,” meaning a certain percentage is added for every million earned during closing.

The Lehman Scale

Fees/Timing

Our success fees are based on a percentage of the total transaction value, payable when the deal is closed. Our fee schedule is comparable to that of other leading merger and acquisition intermediaries.

To partially cover the work shown in the timeline below we also charge a monthly retainer fee. We represent either the buying or the selling side in any given transaction and are never paid by both parties.

Week 1-5

Plan strategy and conduct internal due diligence

Understand company and its objectives
Review and restate operational and financial performance
Review and sharpen growth projections
Develop preliminary marketing strategy
- Value propositions
- Types of buyers
- How broadly to market

Week 6-9

Prepare memorandum and identify buyers

Define key selling points
Prepare offering memorandum
Identify and evaluate potential buyers
Customize approach for strategic and financial buyers

Week 10-15

Conduct formal marketing efforts

Contact buyers
Distribute memorandum
Qualify buyers and furnish information
Prepare management presentation
Receive preliminary indications of interest

Week 16-22

Conduct management presentations and buyer due diligence

Select qualified buyers
Facilitate meetings and plant visits
Coordinate follow-up information requests and discussions

Week 23-24

Evaluate bids and assist negotiations

Evaluate offers
Assist in negotiations
Facilitate due diligence and legal documentation
Close transaction

Committed To Your Success

Whether you are navigating a business acquisition, sale, or capital raise, our team ensures that every transaction is executed with expertise, discretion, and a results-oriented approach.

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M&A Advisory Fee Structure The table below provides average fees as expressed by EBITDA.