Completion Bonus Payment for Self-Funded Searcher?

searcher profile

May 01, 2025

by a searcher from KEDGE Business School in London, UK

I've been in my self-funded search for almost 2 years now. I'm close to closing a deal, but you never know... Given that it has taken longer than I would have wished (read: a couple broken deals along the way) I'm wondering if it's acceptable to investors to ask for a one-off "bonus" payment on completion, to make up for some of the capital gone into the search? It really feels like I'd deserve a little something, if/when I manage to close this deal. Any thoughts?
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commentor profile
Reply by a searcher
from Brunel University Uxbridge in London, UK
I'm a self-funded searcher also approaching the two-year mark, and I’d like to think a one-off success fee is both reasonable and fairly common, especially given we’ve absorbed all the risk and costs along the way. I’d frame it within the overall transaction costs, size it appropriately, and fund it from the debt/equity raise at close. A director’s loan is also a good shout if the total deal fees are starting to look a bit rich. I’ve heard other searchers quote a 2–3% success fee (based on EV) as investor-palatable - hope that's helpful
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Reply by an investor
from Western Washington University in Key West, FL 33040, USA
It is not common in the self-funded searcher world. Your "bonus" is the fact that you get to retain the majority of the common equity while putting up very little equity. Even in independent sponsor land, deal fees are almost always 100% rolled into the deal.
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