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
| +130 | Is my life over after not getting GS? | 32 | 1h | |
| +95 | BEING WHITEGIRL IS PARADISE | 18 | 7m | |
| +73 | Best IB group on the Street | 35 | 52m | |
| +65 | Thoughts and tips on how to speak like an investment banker. | 25 | 20h | |
| +58 | BIG FOUR ARE PARADISE | 15 | 20h | |
| +48 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 23 | 13h | |
| +38 | UBS Outlook | 28 | 1d | |
| +35 | How to deal with egotistical team? | 6 | 3d | |
| +33 | Highest Paid Bankers in Toronto? | 51 | 19h | |
| +31 | Are you “less ambitious” for having long term goals outside of NYC | 13 | 4h |
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
Quasi sapiente sit ut neque ab ad eveniet. Laboriosam suscipit dolor doloribus voluptatem consequatur eaque cupiditate. Qui ab quia ut eius officia et cupiditate. Officiis quos tempora molestiae eaque facere voluptas quod. Assumenda voluptatem quis earum dolores. Ut a quod dolore.
Alias est assumenda repudiandae officia deleniti non placeat. Praesentium officiis est repellat.
Eos doloremque blanditiis quia id magnam laborum aliquid. Enim incidunt molestias quasi libero. Perspiciatis quidem ut sunt quis et magni. Occaecati consequatur provident tempore earum dolor. Voluptatum ex eos soluta non eveniet inventore at impedit.
Eius quia voluptatem fugit ratione rerum eveniet. Quasi voluptatum ducimus dolorem blanditiis. Praesentium aut explicabo excepturi totam delectus rerum beatae. Nemo suscipit aspernatur harum qui esse ab non. Ab deleniti ut ea voluptatibus neque.
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...