List of Transaction / Deal Fees

searcher profile

January 23, 2024

by a searcher in New York, NY, USA

I want to make sure I'm capturing all of the potential deal fees I will encounter during the due diligence and closing process of a transaction that will soon be under LOI. In addition, to Legal, Tax, and Accounting / QoE fees, what else should I be budgeting for? If there are good resources you all have seen on this matter please feel free to share those as well! Thanks.

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commentor profile
Reply by a lender
from University of Florida in Dallas, TX, USA
It depends on whether the deal includes CRE or not and whether you are going the debt route or the equity route.

As a starting point on most business acquisitions, I start around $15k in closing costs for purely bank related costs (no CRE). This does not include any buy-side due diligence fees/cost. If you are getting conventional debt, estimate at least 1% of the loan amount as a financing fee from the bank. If you're going the SBA route, the only "fee" associated is the SBA Guaranty fee, and that is published each year by the gov't. Currently, they're waiving a fee on deals less than $1MM, its minimized for deals between $1MM - $2MM and closer to 3% for deals $2MM - $5MM.


If CRE is involved, ensure you're budgeting for title and transfer fees, which differ state to state.
commentor profile
Reply by a searcher
from Columbia University in Sacramento, CA, USA
Insurance would be another bucket to consider. Some of that happens post-close but useful to have all of your expenses lined up as soon as possible. Hopefully your sellers have historically had the appropriate coverage levels on the business otherwise those costs can quickly add up. Talk to Oberle or Symphony if you want search-specific support.
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