M&A Advisor Fee Calculator
Model investment banker or M&A advisor fees based on enterprise value and fee structure.
M&A advisory fees (investment banker commissions, legal fees, accounting fees) typically consume 5-8% of total deal value. Investment banking success fees alone often run 1-2% of purchase price, while legal and accounting can add another 2-3%. Understanding these costs helps you model your net proceeds accurately and budget for transaction costs.
Not all advisors charge equally, and some costs are negotiable. Smaller deals (under $10M) face higher fees as a percentage of purchase price. This calculator helps you model total professional costs and understand which advisors justify their fees through better deal terms or buyer selection.
Fee Inputs
Types of M&A Advisory Fees
Investment banker success fees typically run 0.75-2% of purchase price, structured as a sliding scale (lower percentage as deal size increases). Retainers of $50K-$150K cover initial work. Lawyers typically charge hourly (hourly rates $300-$500) or success-based fees (0.25-1% of deal value). Accountants charge hourly for diligence support and tax planning. Other costs include data room platforms, printing, travel, and miscellaneous services.
Many deals have bundled fees where investment bankers include some legal and accounting work. Others have separate advisors. Bundled approaches often cost less but give you less control over advice quality. Separate advisors cost more but provide specialized expertise.
Negotiating Advisory Fees
Most advisory fees are negotiable, especially investment banking success fees. Smaller deals face higher percentage fees (1.5-2%) while larger deals (over $100M) may negotiate down to 0.5-1%. Bundle legal and accounting fees into investment banking retainers or negotiate discounts for multiple services. Ensure you have clear engagement letters with defined scope, fee structure, and exclusivity terms.
Avoid signing engagement letters without minimum fee guarantees or without capping your total advisor costs. Also beware of success-only fee structures that create perverse incentives. You want advisors motivated by deal success but not so that they recommend accepting bad terms just to close.