Business Plan Key Elements

What is a reasonable “finders fee” for a business agent?

I am in the middle of putting a deal together that has a valuation of $13 million. The reasons for the deal, and terms do not include intangible factors, but those intangibles are the motivation on both sides. I need to base a finders fee on the $13 million, but have also been a key contributor to the evolving business plan. I want to structure a reasonable compensation package but have no idea how to do that. My expertise is NOT that of an agent or consultant. My primary concern is that I provided the vision, but will be circumvented too early. Naturally, that is a loss for me, but I think it is typical for the visionary element to be removed…with subsequent loss of vision comes the failure of the entire plan. I do have a vested interest in the overall success of the concept, for personal reasons not financial. I would appreciate any suggestions or comments on my thinking process.

There is a wide spread in what the deal is worth to the parties and what they would be willing to pay. We have paid anything from 2.5% to 20% depending on the deal and who we are dealing with. The factors include

- how safe is the deal
- how bad do they need the deal
- how much profit is in the deal
- how much work did you do
- do they need you to make the deal work
- do they want you to bring them your next idea

Usually fees are negotiated up front or early in the process. Tell you what, for a reasonable fee I will negotiate for you

Five Key Steps To A Successful Business Succession Plan

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