Deal referral fees
What is a standard SMB deal referral fee (for a proprietary introduction)?
Was quoted: greater of 1% of deal value or $100,000
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by a searcher
from New York University - Leonard N. Stern School of Business
in Los Angeles, CA, USA
in Los Angeles, CA, USA
2yrs ago
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by an intermediary
2yrs ago
from Minnesota State University, Mankato in Minneapolis, MN, USA
from Minnesota State University, Mankato in Minneapolis, MN, USA
Depends on the potential transaction size. A common structure that I've seen is Lehman scale:
5% of the first million dollars of the Aggregate Consideration,
4% of the second million
3% of the third million, 2% of the fourth million,
then 1% thereafter.
5% of the first million dollars of the Aggregate Consideration,
4% of the second million
3% of the third million, 2% of the fourth million,
then 1% thereafter.
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by an intermediary
2yrs ago
from The University of Chicago in Rockford, MI, USA
from The University of Chicago in Rockford, MI, USA
I do buy side and my fees are Lehman with $100k min for deals <2m EV and $200k min for larger deals. I’ve never seen a capped fee and have heard of seven figure referral fees for very large deals.
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