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Commission for a deal

a client of ours is brokering a deal for a £15m investment in a company that currently has a vlaue of around £30m

they are being offered shares or commision to remunerate them for setting it up and its been left to them to set a figure

any ideas of what would be the best way to remunerate and the level to expect for such a deal?

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How long is a piece of string?

All deals are ultimately about how much is someone willing to pay. I have done over 100 decent sized deals in the last 20 years and seen anything from 0.5% to 5% charged on one or both parties. The form of the remuneration is then down to your clients appetite for risk. Cash is cool (you know where you stand) but shares can make you very very rich (eg: my old boss who made £750 million over a 20 year time frame in similar circumstances)

Me, I would be looking for 1.5-2.5% of the total deal value. I would play straight and be looking for that from one side only and I would want cash ('cause I'm poor now-a-days)

 

Steve

 

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How long is a piece of string ?

Easy

 

 

 

 

Twice the distance from the middle !!!

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