What is a typical finders fee structure if you refer a business to someone?

by a searcher from Cornell University

1 month ago

I see deals fairly often that would not be fits for us, but that would be of interest to friends of mine that have a specific roll-up strategy they are looking at. What does a typical finders fee look like? Can you also receive a finders fee if sourced through a broker?

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searcher from University of Virginia-Darden - Darden School of Business

How did you officially track or document the referral?

1 month ago | like reply | 0 likes

intermediary from Harvard University

There's not really a standard, but 1-2% of the deal is around market. It depends on who you are referring it to. Referring an off market deal to a broker? might be 2% of the purchase price when the deal closes. To a searcher, it might be less or longer term because they need their cash for down payment and deal fees.
If you want to collect a fee from the broker, generally they will say that you need to be licensed to receive a fee, and some will just not agree to pay one.

1 month ago | like reply | 0 likes

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