Standard Sell-Side Finders Fee?
What is the standard % finders fee for referring a $350 - $700 mm sell-side mandate? Are you paid a % of the banks success fee? If the deal fails, are you paid a % of work fees?
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What does referring mean? Are you letting an investment banker know about an opportunity that they can pitch along with 10 other investment banks? In that case, you're providing little value, and I wouldn't expect to see (m)any dollars. If you have enough influence at the company to get the banker invited to the pitch or something a bit more tangible, that's very different.
Word of advice either way - make sure to get any arrangements for fee sharing / deal economics in writing. Do not get caught up in the moment and forget this step.
Assume that a beauty contest doesn't occur and I get my bank to sign the potential client. What % are we talking on a success fee?
As above poster alluded to, we need more details. Typically you would not get a % of work fees (e.g., retainers), only the success fee.
bump
Our bank had a 10% referral fee program. That is, if an outside party referred a company/prospective deal, they would receive 10% of whatever the bank was paid.
Typically, would your bank be charging 1.5% on a transaction this large? All is constant.
1% for a sell side mandate $100M-$750M at my firm.
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