The Firmex M&A Fee Guide 2022/2023 — North American Edition

The Current State of M&A Advisory Fees

Firmex’s 6th annual M&A Fee Guide 2021-2022 is the authoritative source on M&A fees for sell-side engagements in the middle market. The guide enables M&A advisors and their clients to have more transparent conversations on advisory fees and how they’re charged, to better align expectations for compensation on the deal.

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 the M&A Fee Guide are also presented with featured commentary from M&A experts at  Axial and Divestopedia, sharing their views on how the data matches up with their professional experience.

Key Highlights

Most firms said they kept their M&A fee levels the same in 2022 as in 2021 for deals of similar size and complexity.

More than half of the advisors said their revenue from M&A fees will be higher in 2022 than in 2021. 

Most firms said they are about as profitable in 2022 as in 2021. Of the rest, more said profitability increased than said it declined.

The number of firms that don’t charge a retainer or work fee in addition to a success fee increased to 19%. 

Three-quarters of firms said there was no change in the pressure to cut fees in 2022. Only 12% of firms said the pressure increased.