Buy Side Advisors - Success Fee Only

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August 15, 2024

by a searcher from New York University in Cranford, NJ, USA

Does anyone know any Buy Side Advisors who are compensated by a success fee only? I understand that there is so much work done prior to getting to that, so not sure if that is an option on most as it may be too big a risk for them to take. Separately, I also feel like there is such a large possibility of sinking a ton of money into retaining an Advisor that subsequently doesn't deliver, which is also a risk. Just trying to gauge if there is a potential fit out there and wanted to ask the communities thoughts.

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Reply by a searcher
from Columbia University in Leesburg, VA, USA
I'm in talks with an M&A advisor who has both the Investment Banking / M&A experience as well as a practicing attorney in this space. The success fee structure offered is $15k flat fee at the time of an LOI being crafted/presented and then 4% of enterprise value less the $15k at close. Includes drafting/negotiating the LOI, performing legal DD and drafting/negotiating the APA. From what I'm seeing this is pretty solid but anyone have another point of view? If I wish they also have capital sources and for a 3% one time fee will raise capital for me. Not excited about this latter part but good to know it's available.
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Reply by a searcher
from The University of Michigan in New York, NY, USA
I do this. But I’m picky at whom I choose to work with. Certainty of closing is all that matters when the compensation is success based. Feel free to DM me.
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