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Fees & Alignment

How we get paid, when, and why (in plain English)

Our philosophy

  • Put most compensation at risk, so we win when you win.
     

  • When a readiness fee is appropriate, keep it tight, useful, and creditable toward a sell-side engagement.

Engagement models

1) Sell-Side Mandate (Success-Fee Driven)

When used: You’re ready to go to market within ~60–120 days.

What’s included: buyer research & outreach, CIM & data room, offer management, LOI negotiation, diligence coordination, closing support.

How fees work (typical LMM structure):

  • Success fee: tiered percentage of enterprise value (EV). (Example framework; finalized in your engagement letter.)
     

    • EV up to $X: __%
       

    • EV from $X–$Y: __%
       

    • EV above $Y: __%
       

  • Minimum: $____ (credited against tiers).
     

  • Expenses: pass-through, pre-approved, itemized monthly.
     

  • When earned: at close and funded.
     

  • Exclusivity & term: standard 9–12 months, with tail limited to named buyers in market during the term.

     

2) Exit Readiness Advisory (Scoped Retainer, Credited Later)

When used: You’re 3–18 months out; you want to increase valuation and reduce deal risk before going to market.

Deliverables:

  • Financial cleanup plan (working capital, add-backs, KPIs)
     

  • “Banker’s box” prep (documents list, data room structure)
     

  • Risk reduction (customer concentration, key-person, contracts)
     

  • Valuation range & marketability assessment
     

  • Tax-aware structure options (with your CPA/attorney)
     

Commercials:

  • Fixed monthly fee: $____ for ___ months (cap of $____).
     

  • Credit: up to 100% of fees paid credited against a future sell-side success fee if you engage us within ___ months.
     

  • Cancel anytime: 30-day notice.

     

3) Referral & Co-Brokerage
 

  • If your company is outside our sweet spot, we may refer you to a specialist.
     

If we share a mandate with a specialist, we’ll disclose the arrangement and keep your total fees within market norms.

What we will never do:

  • Surprise “marketing packages,” undisclosed add-ons, or evergreen renewals.

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  • Claim “average premiums” or “close rates” without showing how they’re calculated.

Want exact numbers?

Book a 20-minute call. We’ll size your fee with ranges and give you a written take-home.

Disclaimer

Exit Teams is not a law or tax firm. We coordinate closely with your attorney and CPA. Any valuation ranges or fee illustrations are non-binding until an engagement letter is executed.

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