The Funnel, Ep. 10: What Percentage Do Transaction Advisors Charge?

Once founders decide to move forward with a sale, questions about cost quickly follow. Advisor fees can seem unclear, especially for owners who have never been through a transaction. In this episode of The Funnel, Kirk explains how transaction advisor pricing typically works across deal sizes. He walks through success fees, retainers, minimums, and common pricing models. Watch the video below for a clear breakdown of what to expect.

In this episode of The Funnel, M&A advisor Kirk Michie explains how transaction advisors—such as investment bankers and business brokers—typically structure their fees. While pricing isn’t regulated, the market has created relatively consistent ranges based on transaction size and complexity.

Kirk outlines that smaller transactions often carry higher percentage fees, sometimes around 4–5 percent, with minimum fee thresholds in place. As deal size increases, percentages generally decline, with mid-market transactions often falling in the 2–4 percent range and larger deals dropping closer to 1–1.5 percent. He also explains common pricing models, including flat percentages, scaled incentive structures, and the Modified Lehman Formula.

Beyond success fees, Kirk discusses retainers and consulting fees, which may be charged upfront or monthly to cover the work required to prepare and run a sale process. He emphasizes the importance of understanding how advisors are incentivized and encourages founders to validate fee structures using third-party benchmarks.

This episode provides practical guidance on investment banking fees, transaction advisor percentages, success fees, and retainer structures, helping founders evaluate advisory costs with clarity before going to market.