Finder's fee agreement - enterprise vs equity value base

by a searcher from University of Ljubljana - Faculty of Economics

1 year ago

Hey SFs! 

What would you say, how common are Finder's fees linked to equity value (rather than enterprise value)? What are the market rate % in this case? Any tips on how to address potentially changing financing structure well? Can you perhaps share some agreement that you find relevant in this context?

I personally always prefer a "Lehman scale"- based approach linked to aggregate consideration (cash-free, debt-free basis). However, from time to time I come across people that expect a flat % rate linked to equity value ...

Any advise is welcome. Thanks!

Kind regards, Peter

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searcher from University of Wisconsin - Madison

Interested to hear what you came up with here

6 months ago | like reply | 0 likes

intermediary

Here's a good post on finders fees: https://www.hadleycapital.com/insights/small-business-private-equity/finders-fee-agreements-in-small-company-acquisitions

6 months ago | like reply | 0 likes

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