Typical deal fee for self-funded searchers

searcher profile

July 27, 2023

by a searcher from INSEAD in London, UK

Hi everyone,

I am curious to know what is the typical percentage fee charged by self-funded searchers to investors upon closure of a deal?

Is the fee charged as a percentage of EV (deal value) or equity value raised from investors?

Does this percentage fee include financial and legal DD costs or are those charged separately to investors?

Many thanks for any insights!

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commentor profile
Reply by a searcher
from Duke University in Columbus, OH, USA
I don't have any experience with this but I am curious. Is this a fee in addition to searchers equity position in the acquired company? I would think you could also make an argument for a higher than average equity stake. Of course an immediate fee would help recoup some self-funded expense in the short term.
commentor profile
Reply by a searcher
from University of Alberta in Calgary, AB, Canada
The expected closing fee for a self-funded searched is between 1-2% of the total EV. The closing fee is separate from all other transaction fees.
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