Unlike many firms in our industry, I generally do not charge up-front fees. If a company is profitable, marketable, and priced reasonably, I do not charge an upfront fee, retainer, or monthly work fees. Some firms charge $50,000 or more for a “valuation” or “marketing retainer” plus monthly progress payments. I believe M&A professionals should only get paid when they deliver results.
My total commission is comparable to most M&A firms and is tailored to the size of the offering. Because I am selective about the companies I take to market, buyers respect the quality of these companies and the value they represent. This translates into faster closings and higher selling prices, which is good for you and good for us.
Because we invest our time and resources to help clients sell their companies, we are very selective about the companies we represent. We only accept a limited number of assignments per year. We are so confident of our ability to deliver the results you seek that we work primarily on a contingent fee basis. If we believe we can sell your company, we are prepared to invest our time, money, and resources to make that happen.
I do require a one-year exclusive agreement which is in the sellers’ best interest for several reasons:
Confidentiality: M&A transactions often involve sensitive information about the business being sold. With an exclusive agreement, the seller can ensure that the advisor maintains strict confidentiality throughout the process, minimizing the risk of leaks that could harm the business or its reputation.
Efficiency: Working exclusively with one advisor can streamline the process. There’s no need to manage multiple advisors or coordinate between different parties, which can lead to delays or misunderstandings. This efficiency can help expedite the sale process and reduce administrative burdens on the seller.
Maximized Value: With their exclusive focus on the seller’s transaction, the M&A advisor is better positioned to negotiate the best possible deal terms and maximize the value of the sale. They can leverage their expertise and network to identify qualified buyers, conduct thorough due diligence, and structure the deal in a way that benefits the seller.
Alignment of Interests: By entering into an exclusive agreement, the interests of the seller and the M&A advisor are aligned. Both parties are motivated to achieve a successful outcome, as the advisor’s compensation typically depends on the successful completion of the transaction and the value realized by the seller.
Risk Management: Having a single, experienced advisor overseeing the transaction reduces the risk of miscommunication, conflicts of interest, or other issues that can arise when dealing with multiple parties. This can provide the seller with greater peace of mind throughout the process.