How common is it to get contingent fee advisors?

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April 23, 2020

by a searcher from University of Arkansas at Fayetteville in Memphis, TN, USA

I've been reading some literature from a group that is claiming all of their advisors are contingent fee based (i.e. their lawyers, lenders, and CPAs only get paid once the deal closes). Is this common in your experience? Is there anyone on here that is in an advisory role that is open to this structure?

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commentor profile
Reply by a professional
from Missouri State University in Chicago, IL, USA
We are one of those advisors and although that does happen, it is not common across the board. There are certain services that are logical to include on more of a success fee basis (i.e. debt raising which we do on a contingent fee basis) but others not as much so it really comes down to an advisor by advisor discussion. We have a variety of arrangements with our clients but are a boutique and able to have flexible arrangements whereas other firms may not be in that position. I can be reached at redacted if you wanted to discuss further.
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Reply by a professional
from Villanova University in New York, NY, USA
Joshua, I do financial due diligence for my firm (Quality of Earnings). We don't offer pure contingency work, but do provide a very reasonable fee structure to help minimize broken deal costs. Let me know if you'd like to talk further about it. We work with Search Funds, Independent Sponsors, and other cost-conscious investment vehicles regularly. My email is redacted We also happen to do a lot of work in the staffing space. -Dave
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