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.