M&A Advisor Cost to Sell a Business

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