Understanding Our M&A Advisory Fee Structure

Transparent, Aligned, and Designed for Success

At Western M&A Advisory, we believe in full transparency when it comes to our engagement fees. Selling a business is a complex, high-stakes process, and our fee structure is designed to align our success with yours while ensuring you receive expert-level service throughout the transaction. Below, we break down the key elements of our fee structure and why they are essential for a successful sale.

1. Retainer Fee: Commitment to the Process

🔹 What It Is
 A retainer fee is a commitment fee paid at the start of the engagement, sometimes structured as an upfront payment or spread across monthly installments.

🔹 Why It Matters
 Selling a business requires significant upfront work, including financial analysis, valuation preparation, marketing materials, and buyer outreach. A retainer ensures both parties are fully committed and allows us to dedicate the necessary time and resources to securing the best outcome for you.

🔹 How It Works

  • Applied toward the overall engagement.

  • Helps fund essential preparatory work before engaging with buyers.

2. Success Fee: Aligned with Your Sale Outcome

🔹 What It Is
 A success fee is a percentage of the final transaction value, payable only upon the successful completion of a sale.

🔹 Why It Matters
 This structure aligns our incentives with yours—our focus is on achieving the best possible sale price and terms. The success fee compensates us for the time, expertise, and negotiation strategies required to complete the transaction.

🔹 How It Works

  • A percentage-based fee that scales with transaction size.

  • Only payable upon the successful closing of a deal.

  • Ensures our interests are fully aligned with achieving the best outcome for you.

3. Tail Period: Protecting the Work We've Done

🔹 What It Is
 A tail period ensures that if a buyer introduced during our engagement purchases your business shortly after the engagement ends, the success fee still applies.

🔹 Why It Matters
 Finding the right buyer takes time, and deals often continue progressing beyond the initial engagement period. The tail period ensures we are fairly compensated for the connections and groundwork we laid during the process.

🔹 How It Works

  • Applies only to buyers introduced during the engagement.

  • Covers a defined period after engagement termination.

  • Protects the value of the work completed on your behalf.

4. Exclusivity: Maximizing Your Market Position

🔹 What It Is
 We work with business owners on an exclusive basis, meaning you won’t engage multiple advisors simultaneously.

🔹 Why It Matters
 An exclusive engagement allows for a focused, coordinated approach in presenting your business to the right buyers. It prevents conflicting negotiations, ensures a consistent message in the market, and maximizes buyer confidence.

🔹 How It Works

  • The engagement remains in place until formally terminated with written notice.

  • We dedicate our full effort to maximizing value while avoiding market confusion.

5. Expense Reimbursement: Keeping Things Efficient

🔹 What It Is
 Certain direct costs related to marketing and transaction execution may be subject to reimbursement.

🔹 Why It Matters
 To ensure your business is presented in the best possible way, we may incur expenses related to professional materials, outreach campaigns, and buyer engagement. Any reimbursable expenses are pre-approved and billed transparently.

🔹 How It Works

  • Only pre-approved expenses may be reimbursed.

  • No markups—billed at cost.

Our Commitment to You

At Western M&A Advisory, our fee structure is designed to be fair, transparent, and aligned with your success. We focus on maximizing your business’s value while ensuring a seamless sale process.

📞 Have questions? Contact us for a confidential consultation to discuss how we can help you achieve a successful exit.