How Much Does an M&A Advisor Cost?

The honest answer: it depends on deal size, and the fee structures are less mysterious than they look.

The two components

Most sell-side M&A engagements have a small work fee (sometimes called a retainer or engagement fee) and a much larger success fee paid at closing. The work fee covers preparing the marketing materials and running the process; the success fee is a percentage of the transaction value.

Typical ranges

• Work fee: $10K–$50K depending on complexity, sometimes credited against the success fee
• Success fee: 3%–10% of transaction value, with the percentage declining as deal size increases
• Under $5M deals: often 8%–10% or a fixed-fee arrangement
• $5M–$25M deals: typically 4%–6%
• $25M+ deals: often 2%–4%, sometimes with tiered structures like the Lehman formula

Why it looks expensive

On a $10M sale, a 5% success fee is $500K. That number lands hard. But the right advisor consistently generates more than their fee in incremental deal value — through competitive tension, better terms, and by keeping the deal from falling apart.

What to actually budget

For a Pacific Northwest business in the $3M–$30M range, plan on a modest upfront work fee and a success fee in the mid-single digits. Ask any advisor to walk you through exactly how their fee would apply to your expected deal size — the math should be transparent.