What is a normal cut for sourcing deals?

by a searcher

3 years ago

I'm wondering what the precedent or normal range is if you bring on partners to handle sourcing of deals. I know there are companies that just full time acquire hvac for example, and they either pay employees or pay partners to source the deals.  What would be a normal cut if someone brings you an interested party in selling? Is there anyway to get a "typical" range?

7 likes
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3 comments

searcher from Westminster College of Salt Lake City

I second Jason. I used to source deals for Leucadia before they sold to Jefferies & they paid Lehman. 5% on the 1st $1m, 4% on the second $1m, 3% on the 3rd $1m, down to 1% for every additional million.

3 years ago | like reply | 0 likes

searcher from University of Pennsylvania - The Wharton School

lehman formula 5, 4, 3, 2, 1

3 years ago | like reply | 1 like

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