Structuring Finder's Fees Arrangement

by a searcher from The University of Chicago - Booth School of Business

3 years ago

Hi all,

Hope you all are doing well.

I have received some very interesting leads from my river guide. These leads are not up for sale but will entertain sale conversation. However, to proceed further I want to get into a formal contract with my river guide on role & responsibility and fee arrangements. I understand that the fees is generally around 1-5% of EV. However, if someone could help me to structure this in detail? TIA.
PS: My river guide is a great guy and I want to compensate him fairly for the relationship.
Cheers,
Ankit

2 likes
250 views
3 comments

investor from Illinois Institute of Technology

River guide? Standard Lehman is a little out of date and low in today's environment. However, private equity groups will offer this. For small deals, investment bankers will be higher.

3 years ago | like reply | 1 like

searcher from Brigham Young University

The Stanford materials also have an example contract that contains language around the fee. It may be a little outdated.

3 years ago | like reply | 1 like

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