Buy Side Advisors - Success Fee Only

by a searcher from New York University

4 months ago

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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intermediary from Queens University of Charlotte - McColl School of Business

My firm handles some Buyside engagements but it's either very defined with communication underway or it's a retained search.

2 months ago | like reply | 0 likes

searcher from Columbia University - Columbia Business School

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.

2 months ago | like reply | 0 likes

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