Current Market Price for Finder's Fees

by a searcher from Harvard University - Harvard Business School

6 years ago

What is the current market rate / structure for a finder's fee?  I'm not referring to a retained buy-side broker, but more of someone that makes an introduction, and earns a contingency fee if the deal closes.  Thanks in advance for your perspective.

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21 comments

intermediary from Wesleyan University

I suspect there's a difference in terminology here. In my experience the Lehman or several percent fixed fee is market for a proprietary search and deal mediation. In this sense it means the intermediary does the work to bring you a deal and both sides agree to exclusivity in some defined scope. I doubt this is what any searchfunder wants to contract out. I understand "Finder's Fee" to be only for the introduction. My opinion (and no more than that) is that providing the first handshake should yield under 1%. Should. I'm not saying people don't get more, that just seems egregious to me and I think is unfair to the client on either buy or sell side.

If buyer and seller have both engaged intermediaries of any kind then each should be paying their own fees.

5 months ago | like reply | 0 likes

professional from Queen's University

Lehman or flat fee

1 year ago | like reply | 0 likes

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