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"Somebody also pocketed a $7.5 million “finder’s fee” for helping to put the deal together." That's interesting and a lot of money. Is it common?
by sadiq 16y ago
"Somebody also pocketed a $7.5 million “finder’s fee” for helping to put the deal together."
That's interesting and a lot of money. Is it common?
- far33d 16y agoIf the "finder" is an investment banker, this seems very low.
- kadavy 16y agoI've signed a finder's fee agreement before. All I would have had to do is send an email intro to someone who eventually invested. I believe it was for 10 or 15% of what would have been raised.
- smanek 16y agoAs a rule of thumb, investment banks will charge about 7% of the value of a stock issue for an IPO. So, for comparison a ~$1B IPO (which this round was comparable too) would have earned a bank about $70M in fees. By that metric, only paying $7M in fees seems cheap. Even assuming the lawyers/diligence/audits/etc cost another $10M (and I suspect that's probably way too high), Groupon is still getting off pretty cheap.