What is a typical finders fee?

searcher profile

December 11, 2024

by a searcher from University of Zürich in Chicago, IL, USA

Hello Searchers & Co,
What is a typical finders fee (5%) that one would pay to an advisor who can introduce potential targets?
We're searching in CPG (candy industry), EV $20m-40m for the manufacturing platform. We're also looking at smaller brands to add to such a platform.
I appreciate your help.
Fabio

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commentor profile
Reply by a professional
in Jaipur, Rajasthan, India
Search for Lehman's formula on Google, it is widely used technique in case of commissions for large value deals.

Apart from that, if you seek professional help to building proprietary deal flow, my team can help you with the same.

We can build an outreach system for you that would help you generate conversation with potential sellers.

I can be found at redacted if you seek help for the same.

PS - We do not work on a finder's fee though, as we build an outreach system specifically for you. You own the rights to everything that we create for you.
commentor profile
Reply by a searcher
from The University of Chicago in Chicago, IL, USA
If they are just making an introduction, a finder fee is around 1% of purchase. If they are acting as a true buy-side broker, expect a modified Lehman fee that can be 4-8%. Very big difference in the work involved between the two. Finders fee is just an intro. Broker is full search, negotiation, and guiding you through close.

Highly recommend signing as many non-exclusive finder’s fee agreements as you can. Getting intros for 1% is well worth it.
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