Success fee structures for mergers and acquisitions worldwide 2017-2019
For a scaled percentage structure the advisor sets a base-level success fee for the initial deal valuation. If the completed deal go over this initial valuation a scaled fee is added. For example if an initial valuation of a deal was set at 50 million dollars and earned a two percent fee, the next ten million may earn 3% and the next ten million may earn 3.5%. Using this structure arguably aligns the investment banker or advisors interests with the seller, rewarding both parties for a higher deal value.