If you are a firm looking in to M&A, then it is quite obvious that you will have quite a few reasons to find a lot of useful information over the next few lines. Mergers & Acquisitions, takeovers and amalgamations are extremely common these days. However, as entrepreneurs, it is obvious that you will not have the required information, knowledge and wherewithal to handle the complexities associated with mergers and acquisitions. You have to depend on professionals for helping you with the entire process from start to end. There are many advisory firms in your region or city and almost each one of them might have different structures as far as their fees and other expenses are concerned.
Firmex is one such entity that is well-known for offering the best services for those who need the right data rooms. They have come out with a new fee guide. This has been done after quite a bit of research and the firm has collected data from around 480 advisors and investment bankers across the world. Therefore, their report is quite comprehensive. It provides a total and global perspective on the average fee structures that are being charged and also explains as to why the fees are being charged.
What Information Does The Guide Provide
The guide, according to experts and end-users provides useful and valuable insights and data. This includes the average M&A fees that are charged across various regions and also across major cities. They also give information about deal flow and also touch on information pertaining to minimum transaction value, free structures for success and also percentage fee payable depending upon deal sizes. The report is enriched by the fact that contributors include BDO and Dentons. They have incorporated their key finding in the report and this certainly adds quite a bit of value to the entire report of Firmex.
What Are The Key Findings In The Report
According to the latest data there are a few interesting findings. The M&A success fees have quite a bit of variation when compared across regions and major city areas. Because of the significant differences, M&A advisors are advised to approach a “think local” approach when they are assessing the fees. It may not be always advisable to go in for national average on an exclusive basis.
Some Interesting Sell-Side Assignment Information
The report also goes a bit deep in the various engagement terms of Mergers & Acquisitions pertaining to the sell-side assignments. According to the findings of the report, almost 55% of the respondents were of the opinions that they pay their success fee in full on closing. This is irrespective of the fact of the date and time when the components of the purchase consideration have been received by the vendor. Around 66% of the respondent of Firmex told that success fees are included upfront along with the engagement letter. 61% of the respondents were of the opinion that including a break-fee in the engagement letter was not common.
Reimbursement Of Expenses
When asked the question as to how M&A advisors are reimbursed for expenses, 50% of the respondents indicated that they charged only out of pocket expenses from their clients. 23% said they are compensated for the expenses incurred for the data room. This point to the fact that advisors are getting more inclined to have a look at these costs as value additions or many consider this as strategic investments.
There is no doubt that the guide is becoming a valuable tool for business owners who are looking forward to a potential sale. The sale mandates are quite complicated and as per research, there are different ways in which associated fees can be calculated.
About Firmex
Firmex is one of the most widely used VDR – Virtual Data Room. It is used for supporting complex processes and they include compliance, due-diligence and litigation. Their ease of use, good customer services and simple pricing model find favor with many professionals across the world. They include many leading mid-market advisories and investment banks.
It therefore makes sense to get in touch with Firmex for quite a few things. To begin with, they could be one of the best resources when it comes to the latest information on M&A fees and other related costs. Secondly, they are also considered one of the best when it comes to offering customer specific data room solutions.