The cost of an M&A advisor to sell a business depends on more than the percentage. Sellers should compare success fee, retainer, expense recharge, minimum fee, fee cap, payment trigger, and included work. Lyndon Advisory charges 2% of enterprise value, capped at US$300,000, with no retainer, monthly fee, upfront fee, or expense recharge.
The better question is not “what percentage do they charge?” It is “what do I pay at closing, what do I pay if nothing closes, and what process is included?”
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 2025-2026 M&A Fee Guide highlights the range of fee structures used in lower-middle-market M&A. That range is why sellers need a dollar model, not a percentage-only comparison.
Lyndon Cost Examples
| Enterprise value | Lyndon fee | Effective rate |
|---|---|---|
| US$5M | US$100,000 | 2.00% |
| US$10M | US$200,000 | 2.00% |
| US$15M | US$300,000 | 2.00% |
| US$25M | US$300,000 | 1.20% |
| US$50M | US$300,000 | 0.60% |
| US$100M | US$300,000 | 0.30% |
The SBA business valuation guide explains that business value should be assessed using financial condition, assets, and market evidence. Sellers should use the same evidence-based discipline for advisor cost: model the real waterfall from enterprise value to net proceeds.
“Advisor cost should be judged against seller net proceeds, not just against a headline percentage. A lower fee is powerful when the process still reaches qualified buyers and protects valuation.”
— Daniel Bae, Founder & CEO, Lyndon Advisory
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 |
About the Author
Daniel Bae
Co-founder & CEO, Lyndon Advisory
Daniel is an investment banker with 15+ years of experience in M&A, having advised on deals worth over US$30 billion. His career spans Citi, Moelis, Nomura, and ANZ across London, Hong Kong, and Sydney. He holds a combined Commerce/Law degree from the University of New South Wales. Daniel founded Lyndon Advisory to solve the pain points in M&A, enabling bankers to focus on what matters most — delivering trusted advice to clients.
About Lyndon Advisory
Lyndon Advisory is an M&A advisory firm built for Asia Pacific. We help business owners sell their companies and investors make strategic acquisitions with senior-led execution, disciplined process management, and structured buyer research. For owners, the first step is a confidential review of valuation range, likely buyer universe, and whether a structured sell-side process is justified.
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