Will Firm Pay Me?
I know of an asset for sale for $100 million. The asset could be worth $150 million though. If I approach a private equity company with the information about the asset is it possible I could enter into an agreement where if they buy the asset and profit $50 million I get say $10 million. I don't want some little commission and I don't want to be forgotten. Without me there would be no deal. Would some private equity firms agree to what I propose? If you or know anyone who would post your email address and I will contact you.
Interested on this too
What are you basing the asset possibly being "worth $150m" on? If you could guarantee a transaction at that price, why wouldn't you just go straight the the seller, clarify your rationale, and collect your fee that way? On the other hand, if the $150m valuation is not so easily obtained (as I assume is the case) and even a moderate amount of labor or risk is required on the PE firm's part, then a 20% fee of this sort is pretty excessive.
Other firms will value this asset differently for a number of reasons. The value differences can be significant. If I went to the seller how would I be able to collect my fee?
shoot me a private message with more information. If legit i can help you.
It's legit. I would just need to be sure that you or your firm, or the firm you know, has the $100 million (or has access to it), will look at the deal and if they can make the profit I describe above (or something substantial) pay me the type of fee I want. Can you send me the potential buyer details?
If this is Bluestar Airlines, you are too late. I have already pitched the deal to a certain Mr. Gekko....
I've seen finders fees range from 20 bps to 200 bps depending on the size of the asset and the terms and conditions but really never more than that and certainly never anything near what you are proposing. Also, if the asset if for sale I can assure you that you are not the only one who knows that it is for sale. Also, anyone selling anything for $100mm is sophisticated enough to have a reputable broker, banker, or advisor involved in order to drum up interest and fuel a competitive bidding process. You have nothing but feel free to give us more details.
I agree many assets of this magnitude are marketed well but certainly not all them. In the asset I know they have done some marketing but I believe they may not have reached the firm (s) that can see the true value.
Well you haven't given much information but it certainly doesn't hurt to reach out to said firms with your proposal. I can tell you that you are almost guaranteed to become the joke of at least a few offices if you ask for $10mm for simply introducing the firm to a $100 potential acquisition because no firm is going to give away such a significant % of the upside. The better strategy would be to reach out and say that you have an opportunity available and describe it in highly vague terms and ask them what they would be willing to consider for arranging an introduction. Do you anticipate providing them with an in depth analysis of the asset and value creation potential or are you literally just trying to put two parties together?
The only way that you would ever get anything more than the aforementioned finders fee is if you found some way to purchase a company that would trade for (as an example) 10x EBIT in a properly run auction, and you have for one reason or another figured out a way to deliver an LOI for the asset at 6.7x EBIT. If this is the case, I would reiterate that you should PM me with more info on the deal dynamic, valuation statistics, etc. Are you going to just get a $10m check on day 1? Not in this universe. But could you get a big check if the deal works out? Yes.
PE firms are generally quite happy with 20% returns. So really you should ask for $30M.
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