M&A Fee Methodology
It is important for the investment banker to have a strong understanding of fees so that the
In the lower middle market to middle market, fees usually are the following:
6% for <$5M TEV
5% for $5M-$7M TEV
4% for $7M – $10M TEV
3% for >$10M TEV
As you move higher than $2M in EBITDA, the Lehman Scale appears and this is the preferred method for pricing the fee.