M&A Advisor Fee Calculator

M&A fees are 1–10% of transaction value depending on size and advisor.

Sale price

Fee structure

Retainer

Total advisor fee

$545,000

Success fee

$520,000

Fee % of sale

0.07%

How the math works

Success fee per scale + retainer. Modified Lehman tiers down with size.

$8M sale modified Lehman: $5M × 8% + $3M × 4% = $400k + $120k = $520k + $25k = $545k total.

How to Use

Enter sale price.
Enter fee structure.
Enter retainer.
Read total advisor fee.

Frequently Asked Questions

M&A fee structure?

Business broker (under $5M): Lehman scale, 10% on first $1M, 8% on next, 6% next, 4% next, 2% above. Or flat 10–12%. Lower middle market ($5–25M): Modified Lehman 6–10%. Middle market ($25–100M): 1.5–4%. Investment bank ($100M+): 0.5–1.5%. Retainer: $5–50k typical. Engagement letter typically 6–18 months. Best practice: success fee structure aligns advisor with seller. Avoid advisors charging large retainers + small success fee.

How does this fit small business finance?

Small business owners use this calculator alongside cash flow forecast, P&L, balance sheet, and tax projection. Pair with industry benchmark data (RMA, BizMiner, IBISWorld). Decision framework: ROI > capital cost + risk premium > minimum threshold for owner time. Single calculator output is one input — owner intuition + market knowledge + financial discipline complete the picture.

SBA financing fit?

SBA 7(a): up to $5M, working capital, equipment, real estate, business acquisition, longer terms. SBA 504: real estate + equipment, fixed rate, 10–25 years. SBA Express: up to $500k, faster. SBA Microloan: up to $50k. Owner-occupied real estate (51%+ owner use) qualifies. Personal guarantee required. SBA fees: 2–3.75% of guaranteed portion.

When is this worth pursuing?

Small business decisions weighing capex, hiring, expansion, financing should consider: ROI threshold (typically 20%+ for owner risk), payback period (under 3 years preferred), cash flow coverage, opportunity cost vs alternatives. Calculator outputs inform but don't decide — owner judgment about market, competition, and execution capacity is what makes the call.