Any thoughts on finders fees?

by a searcher from Indiana Wesleyan University

5 years ago

Intermediary providing introduction to potential buyer.  Otherwise, buyer is not represented and intermediary will not be involved in the transaction.  Seller is represented.  Small deal - microcap business, enterprise value likely in the $1.5 - 2M range.  What's typical?  Percentage (if so, what %?)? Lehman? Flat fee? Other?  Payable as success fee?  Other thoughts and opinions welcome.

9 likes
338 views
15 comments

searcher from INSEAD

Is the Lehman formula charged for the introduction only? Or does it require further involvement from the introducing party in e.g. the negotiations that would lead to the acquisition? Thanks for the views.

3 years ago | like reply | 0 likes

searcher from Drexel University

No finders fees, ever.

4 years ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Investor seeking Self-Funded Search Deals

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Downsides of "buying a job" below 750k+ EBITDA?

6-7x for a Self-funded Search Deal?

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.