It depends on the size of the transaction. We always charge a small commitment fee when our Business Sale Agreement is signed.
For most sales, the remainder of our fee then depends upon the successful sale of the business and this is generally up to 5% of the consideration achieved. We also charge, usually, 2 progress payments at key milestones in the project as a contribution to our costs and these payments are deductible from the success fee.
For larger sales, we are happy to agree a day rate basis for the work that we do in combination with a lower success fee and guaranteeing that, overall the client pays less as a quid pro quo for paying more along the way.
For smaller sales, we can charge clients less by agreeing to limit the number of visits we make to 2, 1 to finalise the Sales Document and the other to accompany the first buyer visit. After this we continue to manage all aspects of the process dealing with buyers via email and telephone rather than face to face. We have found that this works well for small, straight-forward sales.
We are always amenable to discussing alternative fee structures.