What are the typical fees to expect during acquisition process?

searcher profile

February 13, 2024

by a searcher from University of Northern Colorado - Kenneth W. Monfort College of Business in Denver, CO, USA

I'm trying to figure out how to budget for fees (legal, due diligence, etc.). I'm assuming they vary based on the size of the business but is there a general rule of thumb? I've seen posts claiming upwards of $50K+ in legal fees, which seems especially high unless its a $10M+ business.

My original guess was in the $5-$10K range but might be way off.

0
2
22
Replies
2
commentor profile
Reply by a searcher
in Phoenix, AZ, USA
Yeah it really all depends. Our buyer side attorney charged 400$ an hour for the purchase agreement. Deal size was 2.3 mill. Total came out to about 6k in legal fees. Deal fell apart at the 11th hour anyway thanks to flubbed updated financials from the sellers. Had the deal went through we also would have had our buyer side broker fee which was 5% of the total PP. Then there is also probably accounting fees if you're using one to audit the financials. That's about it at least with my deal.
commentor profile
Reply by a searcher
from University of Northern Colorado in Denver, CO, USA
That's good to know, thanks for your feedback, Robert!
Join the discussion