Fee policy
In an M&A Process there is a risk of the deal not completing after months of work. Frequently these deals are seen dying just before the finish line. Our Fees policy include a retainer, which covers some basic but not all costs plus a success fee on closing a deal.
The Lehman scale
We are mainly engaged by international clients and we chose the Lehman scale. An internationally recognized success fee method.
To manage risk, particularly time, the retainer is typically a monthly fee as opposed to a fixed lump sum. The longer the acquisition process, the higher the risk of the advisor incurring significant losses especially when not closing a deal. The Retainer fees structure is:
ADD ON & SELL TO
€ 20,000.00 at signed Non Binding Offer “NBO”
BUY & SELL SIDE
€ 10,000.00 per month (Maximum 6 Months with a floor at Minimum € 30,000.00).
SUCCESS FEE
This method aligns the interests of the buyer and Advisor because for every incremental increase in value, the advisor actually makes less money.
DOUBLE LEHMAN SCALE (BUY SIDE FEE)
- 10% up to € 1M+
- 8% from € 1M to € 2M+
- 6% from € 2M to € 3M+
- 4% from € 3M to € 4M+
- 2% over € 4M
LEHMAN SCALE (ADD ON/SELL TO FEE)
- 5% up to € 1M+
- 4% from € 1M to € 2M+
- 3% from € 2M to € 3M+
- 2% from € 3M to € 4M+
- 1% over € 4M
The Reverse Lehman Scale employs a linear percentage. It better aligns the interest of the advisor and seller because the fee percentage rises with every incremental rise in value.
REVERSE LEHMAN SCALE
- 2% up to € 40M+
- 2.5% from € 40M to € 50M+
- 3.5% from € 50M to € 60M+
- 4% over € 60M