TORONTO, May 6, 2020—Firmex, a global provider of virtual data room and secure document sharing solutions used by more than 140,000 companies worldwide, today announced the publication of its fourth annual report on M&A fees. M&A Fee Guide 2020 is the authoritative source on M&A fees for sell-side engagements in the middle market. The fee guide serves as a reference point for both M&A advisors and business owners on the pricing of fees.
“We’re proud to publish the 2020 edition of our annual fee guide, which continues to be an indispensable resource for the pricing of M&A advisory fees on midmarket deals. Our goal in publishing this guide is to make the discussion of fees between M&A advisors and their clients more accessible by presenting the state of M&A advisory fees and how they’re charged,” said Mark Wright, Chief Marketing Officer at Firmex. “Though our survey data was collected prior to the COVID-19 pandemic, we believe that as the economy recovers, this guide will be of great help to M&A advisors and business owners alike, as it has been in previous years.”
Using data gathered from a survey of midmarket dealmakers, the guide highlights key points of interest on M&A fees, shared across geographies and deal sizes. The findings in M&A Fee Guide 2020 are also presented with featured commentary from M&A experts at Bowen Advisors, ATRIUM Partners, and MidCap Alliance, sharing their views on how the data matches up with their professional experience.
- When asked to identify where M&A professionals add the most value in sell-side engagements, 68% identified their value in managing the sales process, followed by 59% indicating the sourcing of buyers.
- In an engagement letter setting out the terms and conditions for the client-firm relationship, only 40% of M&A professionals include a break fee if the client declines an offer.
- 43% of M&A professionals say they use a simple percentage to structure their success fees on sell-side engagements, while only 18% used a Lehman formula or close variant.
M&A advisors and business owners will learn surprising insights on the expectations, negotiations, structuring, and associated practices surrounding M&A fees. By reading the guide, M&A advisors and their clients can have more transparent conversations on advisory fees and how they’re charged, to better align expectations for compensation on the deal.
To access the complete report M&A Fee Guide 2020, see here.
About Firmex Inc.
Firmex is a global provider of virtual data room and secure document sharing solutions. As one of the world’s most widely used virtual data rooms, Firmex supports complex processes for organizations of all sizes, including diligence, compliance, and litigation. Whenever professionals need to share sensitive documents beyond the firewall, Firmex is their trusted partner. A Firmex subscription provides simple, safe, and stress-free document sharing without hidden costs or complexity. Since 2006, Firmex has helped over 140,000 companies worldwide take control of their confidential documents. For more information, please visit firmex.com.
Mark Wright, CMO, Firmex
416-840-4241 ext. 281