Almost no M&A firm publishes its fees, so a seller comparing them is comparing proposals rather than prices. The structures are conventional enough that you can read them quickly once you know the four moving parts: the retainer, the scale, the minimum and the tail.
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The retainer
A monthly or milestone payment that funds the preparation work before any buyer sees anything. It is not refundable if you change your mind, and it may or may not be credited against the success fee at closing. Ask which, in writing. A firm that charges no retainer at all is carrying the risk of your indecision, and will price that into the success fee.
The scale
Success fees usually decline as the price rises. The Lehman formula and its doubled variant are the templates: a higher rate on the first tranche of price, lower on each tranche above. The effect is that the marginal rate on the last dollar is much lower than the headline, which is deliberate and reasonable.
The minimum
The single most important number for a seller at the lower end. Where the minimum exceeds what the scale would produce, the minimum governs and the effective rate can be several times the headline. This is the term most likely to be movable when a firm wants the mandate.
The tail
A period after the engagement ends during which a sale to certain buyers still triggers the fee. A tail limited to buyers the firm actually introduced, listed in writing at termination, is standard and fair. A tail covering any buyer for two years is not, and is worth refusing.
Questions people ask about M&A firms
What is a typical success fee?
There is no single figure, and firms that publish anything are the exception. The published US commissions on this site run from 5% to 15%, which spans marketplaces and brokers as well as advisers. Ask three firms in writing and compare.
Are fees negotiable?
The minimum and the tail usually, the scale sometimes. The retainer is often fixed because it maps to real work.
Do I pay if I do not sell?
The retainer, yes. The success fee, no, unless a tail clause is triggered later by a sale to a buyer they introduced.