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Justin - you mentioned that investments bankers take 1-2% of the selling price. What percentage do all the rest of the closing costs take up (lawyers, etc)? Wha
by porter 9y ago
Justin - you mentioned that investments bankers take 1-2% of the selling price. What percentage do all the rest of the closing costs take up (lawyers, etc)? What are these other closing costs?
- justin 9y agoLawyers are one of those costs that can be a lot, or controlled, depending on how much negotiation happens. For billion dollar acquisitions usually you will pay $1-2mm in fees in my experience. For smaller acquisitions I've seen anywhere from 100-500k. Those are very loose ballpark numbers. Other closing costs -- usually there will be an escrow service for any holdbacks. That usually is only tens of thousands of dollars - not expensive relative to deal size.
- mbesto 9y agoOn the sell side, the typical costs are: - Bankers (and/or other advisors) - Lawyers - Accountants (if you don't have dedicated resources) - Your time I can't stress this enough - the last one ends up being your biggest cost (although not direct). I've seen more than enough company's execs struggle with transaction fatigue because you're trying to sell a company while still running one. This is where good bankers/advisors come in.