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I work in a similar field. Among their staff levels, ibankers probably have an average rate about $400-$450/hour. To do a deal on the small side (like the ars d
by timae 18y ago
I work in a similar field. Among their staff levels, ibankers probably have an average rate about $400-$450/hour. To do a deal on the small side (like the ars deal), I would estimate roughly 250 hours. So, somewhere in the neighborhood of $100k.
- rockstar9 18y ago250 hours? Considering an analyst works about 80-100 hours a week, this deal would be done in 3 weeks. ha.
- timae 18y agoYou're right. The hours are probably way off. I do financial due diligence for M&A. I'm on a deal for the next couple weeks for a software company in this price range and it will take us a little under 250 hours to complete a pretty thorough analysis of the target from a deal perspective. Although we're only around towards the end of the transaction, bankers are involved from the beginning. They typically get an offering memorandum together, help the company organize their financial data, contact potential buyers and do anything else necessary to facilitate a smooth transaction acting on the seller's behalf. As far as fees go, we're by the hour, but bankers may very well get a % of the total deal. I certainly don't make ibanker money, but there wouldn't be anytime for my hacking side projects if I did!
- timae 18y agoTotal advisory fees for bankers in the last two quarters, as well as total deal size, are listed in the article below. In each case, it works out to be about 1.3% of total deal value. http://www.bloomberg.com/apps/news?pid=20601087&sid=aGDIGpFKILzM&refer=home http://www.bloomberg.com/apps/news?pid=20601087&sid=aGDI...