How to Navigate M&A Advisor Fees: Insights from an Investment Banking Expert

About the Episode

How much do M&A advisors and investment bankers charge? Bill Snow returns to M&A Talk to explain why there is not a straightforward answer to this common question. He shares insights into the difference between finding a buyer and closing the deal, the positive aspects of monthly retainer fees and how they are a sign of shared risk, how success fees are calculated in various transactions, the importance of understanding the scope of work, and the single most important skill needed for an M&A advisor. 

“The most important thing that an investment banker does is negotiate the transaction. That’s what you want to have.”

Bill Snow

What You’ll Learn

• What you’re paying for: It’s critical to understand the different fee structures used by M&A advisors, including monthly retainers, success fees, and milestone payments.
• Where the fees come from: Gain insights into how investment banking fees are typically calculated, including considerations around purchase price, enterprise value, earnouts, and contingent payments.
• What to look for in an advisor: Learn how to identify the critical negotiating skills you want in an investment banker and the value of understanding their scope of work and deliverables.
• What to avoid in an advisor: Hear the issues with investment bankers who are willing to work for free or charge minimal fees and how to spot a charlatan.

Topics Covered

Want More? Related Resources: 

• M&A Roundtable
• The Art of the Exit
• Acquired
• Business Broker and M&A Advisor Fees: A Comprehensive Guide

Meet Our Guest

Bill Snow

Managing Director, FOCUS Investment Banking | Chicago, IL

Bill Snow is an experienced M&A professional with over 30 years of professional experience, including almost two decades as an investment banker. His work includes business sales and capital raises for middle-market companies as well as buy-side services for acquirers seeking middle-market companies. In addition to his work in M&A, Bill has authored three books, including Mergers & Acquisitions For Dummies (Wiley Publishing, Inc.). He is a sought-after speaker across the United States and beyond, with international lectures in Malaysia and the United Arab Emirates.

LinkedIn: https://www.linkedin.com/in/billsnow/