Fair Broker Fee for M&A Deal

intermediary profile

June 29, 2022

by an intermediary from McMaster University - DeGroote School of Business in Toronto, ON, Canada

In the process of looking for business deals I have heard from some people in the M&A business one of their sources for deal flows are brokers or individuals actively looking for deals. What's a fair rate/fee to give a broker or individual for finding you business acquisition deals?

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commentor profile
Reply by a professional
from Bentley College in Miami, FL, USA
Lehman scale is often used in these situations. https://www.investopedia.com/terms/l/lehmanformula.asp
commentor profile
Reply by a professional
in New York, NY, USA
Depends on the deal, a fair fee could be 12% or 1%. Size matters
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