Deal referral fees

searcher profile

October 09, 2023

by a searcher from New York University - Leonard N. Stern School of Business in Los Angeles, CA, USA

What is a standard SMB deal referral fee (for a proprietary introduction)?

Was quoted: greater of 1% of deal value or $100,000

0
5
102
Replies
5
commentor profile
Reply by an intermediary
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.
commentor profile
Reply by an intermediary
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.
commentor profile
+3 more replies.
Join the discussion