What is the market structure for buy-side banking fee for $200MM to $1Bdeals?
Is there an approximate max or cap for a percentage based fee?
Interested in your thoughts on this fact set:
-Seeking an acquisition target for a SPAC
-Target is $800MM EV
-Would purchase 25% of the equity: $100MM
A 1% EV fee of $8MM is 8% of the equity. This is BEFORE fee for raising money, etc. Once adding in fees for financing, etc, the dilution from the fees are a deal killer for the seller. How often are buy-side fees capped, based on equity size, etc. Thoughts would be welcome!