Finder's Fee Contract

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October 15, 2024

by a searcher from Tulane University - A. B. Freeman School of Business in New Orleans, LA, USA

Does anyone have a finder's fee contract or know what the going rate is for a finder's fee?


Thanks

Canaan

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commentor profile
Reply by a searcher
from Western Michigan University in Grand Rapids, MI, USA
I wouldn't pay a Lehman for someone who just introduces a deal to me. I have engaged buy-side brokers with fees based on the Lehman formula, but they provided services well beyond what a finder's fee would warrant.

With that said, have an attorney draft a finder's fee agreement. It is important for the terms to be as clear as possible. I have seen disputes over calculating the fee and buyer's having short memories of the value the finder provided when it comes time to pay. Both sides will benefit from a well-drafted agreement and not a form used by someone else.
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Reply by a professional
in Raleigh, NC, USA
^redacted‌- if it's a buy-side broker then expect to pay a success fee that is based on the Lehman, Modern Lehman, or Double Lehman formula. If it is a finders fee then there are usually 1.5 % - 3% of transaction value. A finder and a broker do seperate things so there should be a difference in the price. I can send you a copy of my finders fee agreement that is success based only (no retainer). DM me your email and I can send
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