Does anyone know what a typical finders fee is in sourcing a deal?

searcher profile

January 23, 2019

by a searcher from University of Pennsylvania - The Wharton School in New York, NY, USA

If you find a business ripe for acquisition but don't feel that its right for you, and then flip it to another searcher or PE firm

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commentor profile
Reply by an intermediary
from Cornell University in Santa Cruz, CA, USA
Typically Lehman Scale or 1%.
Deals have to be exclusive in that case, and often the fees get knocked back by 50% if a broker/bank gets involved.

In my opinion, you’re probably more likely to get a fee by referring to an M&A broker that you have a relationship with. The fee will be smaller, but you’re more likely to get it.
commentor profile
Reply by an intermediary
from University of Utah in Sandy, UT, USA
The Lehman formula as it originated is dated. It should be modified to reflect the size of the deal as well as the extent of your involvement.
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