Buy Side Finders Fees?

September 16, 2025

by a searcher from Valdosta State University in Roswell, GA, USA

More and more lately I am running into <$1m EBITDA size deals that are stating a buy-side finders fee. On more than one occasion I have pushed back and the listing broker cut the buy-side finders fee agent out of the communication channel and pursued further conversation. I could get behind a finders fee, if these deals were truly brought to me as an off market prospect, but they are listed on deal marketplaces and I am pursuing. Anyone else experience this? Opinions on a buy-side finders fee for listed deals?

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Reply by a searcher
from University of Oxford in London, UK

In my view (& experience) a buyside finder's fee should only be payable in the event that either 1) the individual receiving the fee has been mandated by you to search for multiple deals for them on an ongoing basis, with some degree of giving you first look; or 2) in the event that they support heavily in the negotiations & documentation all the way through the deal, acting as your genuine agent. (The latter is very rare...)

Reply by an investor
from Seattle University in Seattle, WA, USA

Several companies are structured around buyside fees. The question arises: do they truly have a seller? It seems they often contact sellers, suggesting they have a buyer lined up and assure the seller that they won’t incur any fees. They gather basic financial information and then list the deal as available. This could be acceptable if the seller is genuinely interested in completing the transaction, and if the broker or banker is skilled at managing the process. However, it becomes problematic when a buyer invests considerable time and money into a deal, only for the seller to back out because they weren't fully committed to the sale.

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