M&A Advisor Cost: Calculate Your Total Fee

To calculate the M&A advisor cost of selling a business, model the fee in dollars at realistic enterprise values, then add any retainer, expense recharge, or minimum fee. Lyndon Advisory charges 2.5% of enterprise value, capped at US$750,000, with no retainer, monthly fee, or expense recharge. Nothing is due unless a deal closes.

For the broader question of what M&A advisors charge, read the fee explainer. This page helps a seller calculate the total advisory cost of a specific proposal: what is paid before closing, what is paid at closing, what remains payable if no deal closes, and what work the quote includes.

Advisor Cost Components

Cost item	What it means	Seller risk
Success fee	Percentage of transaction value paid on completion	Can be high if uncapped
Retainer	Monthly or upfront advisory fee	Seller pays before buyer value is proven
Expense recharge	Pass-through process costs	Costs can grow outside headline fee
Minimum fee	Floor on advisor economics	Can raise effective fee on smaller deals
Fee cap	Maximum advisory fee	Protects seller on larger deals
Tail clause	Post-termination fee period	Can create liability after switching advisors

Axial’s 2026 M&A Fee Guide, based on 331 advisor responses collected in Q2 2026, reports both upfront engagement fees and success-fee-only arrangements. That variation is why sellers need a dollar model, not a percentage-only comparison.

Calculate the Fee Under Each Outcome

For each written proposal, calculate these three outcomes at the same assumed enterprise value. Check whether retainers are credited against the success fee so they are counted only once.

Outcome	Amount to calculate	Contract term to check
No deal closes	Retainers already paid plus reimbursable expenses and any termination charge	Refunds, expense approval, and termination rights
Deal closes during the mandate	Success fee plus any uncredited retainer and reimbursable expenses	Fee basis, cap or minimum, payment trigger, and scope
Deal closes after the mandate ends	Any fee due under the agreed tail, plus costs already paid	Covered buyers, tail duration, and evidence of actual buyer contact

Keep separate legal, tax, and other third-party bills in the overall sale budget; an advisor’s quoted fee does not necessarily cover them. The fee calculator models Lyndon’s published success fee at different enterprise values.

Lyndon Cost Examples

Enterprise value	Lyndon fee	Effective rate
US$5M	US$125,000	2.50%
US$10M	US$250,000	2.50%
US$15M	US$375,000	2.50%
US$25M	US$625,000	2.50%
US$50M	US$750,000	1.50%
US$100M	US$750,000	0.75%

US$750,000 is the maximum advisory fee under Lyndon’s published model, not a minimum charge. The fee is payable only when a transaction closes.

The SBA’s business sale guidance describes income, market, and assets approaches to valuation. Sellers should use the same comparison discipline for advisor cost: model the real waterfall from enterprise value to net proceeds.

The dollar fee is one input to the seller’s decision. Compare it with the scope of buyer screening, confidential outreach, materials, negotiation, and diligence work in the written proposal.

What the Cost Should Include

Workstream	Included in a serious sell-side process
Valuation	Normalized earnings, value range, buyer logic
Materials	Teaser, CIM, financial model, data-room preparation
Positioning	Investment story and acquisition rationale
Buyer work	Strategic, PE, family-office, and cross-border buyer map
Outreach	Owner-approved, confidential, targeted contact
Negotiation	Offer comparison, exclusivity, structure, and closing terms
Diligence	Buyer question coordination and process control

For related pages, read Business Broker Commission vs M&A Advisor Fee, M&A Advisor Fees and Seller Net Proceeds, and Compare M&A Advisor Fee Proposals.

Practical Next Step

Situation	Best next step
You want to estimate advisor cost	Use the fee calculator
You want Lyndon’s exact pricing	Review Lyndon fees
You want to know whether a sale process is worth it	Submit a confidential valuation inquiry

Submitting a valuation inquiry does not create an advisory mandate.