Comments on: Investment Banking Fees

By: Fabrice Grinda

Fabrice Grinda — Thu, 27 Jan 2011 04:24:44 +0000

Ethan:

This came from a Lazard “cheat sheet”. I agree it feels low, especially at the low end of the price range. For sub-$50 million deals, I have often seen $50k retainers + 3-4% with a $500k minimum.

By: Ethan S.

Ethan S. — Thu, 27 Jan 2011 01:11:00 +0000

This list is VERY low. I’m not sure where Fabrice is “shopping” for investment banking talent but these prices are easily 30% discounted at the sub $5Bn breakpoints. I am a M&A banker here in NYC and I and our MDs have never quoted fees anywhere near these. I guess if you are looking at lower tier firms maybe but not top talent.

Ethan

By: goldenfox

goldenfox — Tue, 13 Nov 2007 18:25:32 +0000

Great site.

Just add to the debate, I have been involved in three sub US$200m raises and we never paid a retainer. Don’t let the bank push you, further you can often get the lawyers to drop the retainer.

Just push hard, it is your market I-banks know days are a dime a dozen and all offer similar skills. Shop around.

By: Juan

Juan — Thu, 26 Jul 2007 16:51:53 +0000

Great info — also, great organic listing.

Curious to know:
[1] what is % from $10-$50 million?
[2] what is a typical retainer? Does it go toward the deal fee?
[3] is capital raise [v. M&A] on a different pricing structure?

By: I-Banking Monkey

I-Banking Monkey — Fri, 20 Apr 2007 13:30:27 +0000

Actually, nowadays, i-banks very often agree to no retainers. On minimum transaction fees I side with you however.

By: Jay

Jay — Tue, 26 Sep 2006 03:39:46 +0000

looks low to me

By: mitchell

mitchell — Sat, 07 Jan 2006 20:00:24 +0000

As a former M&A banker I’d thought I’d just comment that I never saw an engagement agreement where there was not an upfront retainer and a minimum transaction fee.

I love how you posted all this info – it’s great for the entrepreneurs to have this in their backpocket when negotiating fees with bankers.