We're looking at an add-on acquisition of a larger business, which will require a full debt recapitalization. Investment banks have presented a 2.5% closing fee for debt capital advisory services, which would take a lot of work off an already full operations and M&A plate. One consideration is fully self-executing that debt raise internally, but it brings up a question of appropriate compensation for the sponsor.

Wondering what is "market" on closing fees for a searcher / sponsor, for add on acquisitions and debt / equity capital recapitalizations? Is a 2-2.5% fee on the total uses of the new deal a reasonable expectation? Are those fees paid in cash or rolled into additional equity in the company?