M&A advisors do not readily advertise mergers and acquisitions m&a fees on their websites. In
There are many internal and external factors to M&A firms and mergers acquisitions advisors that impact fees. One factor that impacts all firms is to recognize not every deal closes. Reasons are many but a common one is typically when a seller or its shareholders decide not to sell. Even with the collection of an upfront retainer or work fee ($50k -$250k) these failure to close transactions cause significant losses both in financial and opportunity costs. The top M&A firms do not accept every client that engages them. To do so would result in providing a poor service due to lack of bandwidth. So when a transaction does not close the M&A advisory firm has to factor into its success fee the cost of the deals that were turned down.
Additional external factors impacting m&a fees are regulatory and administrative. Large m&a firms with multiple metropolitan locations worldwide have significant administrative expenses to recover. In addition, deals involving complex securities require these firms to be registered as
M&A Fees You can Expect to See
In addition to
- Deal Size $1 million to $5 million expect to be quoted a success fee of 12% to 8%
- Deal Size $5 million to $25 million expect to be quoted a success fee of 7% to 4%
- Deal Size of $30 million to $100 million expect to be quoted a success fee 4% to 2%
M&A Fees may vary depending on the deal size but for those deals whether its $10 million or $75 million (stay tuned for an article on why smaller deals take up much more of an M&A advisors time) to the experienced m&a advisor its only a number in which everything else remains the same in getting your business successfully sold for the highest valuation possible.