Advisory Fees
What percentage of the deal's value do banks usually take in advisory fees? I've read that it's anywhere from .1-1%...does anyone have any insight?
Trending Content - Investment Banking Forum
| +146 | Piper Sandler in talks to acquire PWP | 65 | 1h |
| +135 | Just One More Year | 11 | 2d |
| +128 | Interns without return offers, careers & perspective | 11 | 1d |
| +115 | UBS Appears to be Exploring Sale | 16 | 3h |
| +83 | Are all these UBS postings bullshit? | 21 | 1d |
| +79 | Bringing Deals as a Vice President | 25 | 1h |
| +73 | Paradise Is Paradise | 5 | 1d |
| +38 | Q&A | Investment Banking Analyst, UBS | 2 years in investment banking | 11 | 2d |
| +32 | M&A is Paradise | 1 | 2d |
| +31 | Will they pay Directors $1mm+? | 14 | 3d |
Career Resources
I think .1% is pretty low... All depends on the size. I've read that capital raise (IPO, secondary, etc) are 3-8%. The bigger the deal, the lower the percentage. I think 1% is a rough estimate for deals 200m and above.
So a $10 billion dollar deal would rack up about $100 million in fees? Does that sound reasonable?
Well on a $10B deal - equity or debt - there'd probably be at least 4-5 banks if not more. At 0.5%, that's $50 million, so ~$10M per bank on average...not so unreasonable. I think $100M is sort of unheard of....unless we're talking LEH ch. 11.
Thanks. This is off-topic, but how do the logistics tend to work on a deal where there are 4-5 banks working on the same thing?
M&A advisor fees are between 3~5%, and a common way of pricing the fees is called the Lehman rule... or Lehman Rule x 5 these days
Maxime ut vel eius culpa totam quibusdam amet. Et error voluptate qui ut et distinctio. Rerum numquam ea omnis impedit porro consequuntur error.
Cum perferendis aliquam enim distinctio debitis similique dolorem. Architecto ex dolorem dolor sunt dicta ducimus omnis.
At illo vitae quo aut. Molestiae sed molestiae voluptatem non. Quasi sint sed voluptas dolor laboriosam ullam quasi. Ut natus ut et consequatur voluptatem.
Quidem temporibus consectetur necessitatibus ea aut reprehenderit voluptas. Et praesentium odio non ducimus corporis repudiandae fugiat. Voluptatem qui aut ipsam culpa consequatur voluptatibus aut. Adipisci voluptatem et aut similique perspiciatis cum sint.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...