How to Write the Investment Banking Engagement Letter
There are a few of these terms for which Codiligent business brokers offers significantly more attractive terms. A few of these include:
- The article indicates that a common practice is for a business sale intermediary to charge a monthly retainer. While Codiligent has a small up-front one-time retainer - it is less than many investment banks charge monthly.
- As the article describes, a 24-month tail is common practice in the industry. A tail is the length of time after the engagement formally terminates in which the intermediary will still be entitled to compensation if a transaction closes. Codiligent business brokers' tail is 12 months, or half of the standard length.
- Many business brokers and investment banks seek reimbursement for monthly expenses related to marketing the business, whereas Codiligent only seeks reimbursement in the rare case that there are travel expenses and will always seek approval from its client before booking travel. We also believe that business travel doesn't need to be luxury travel. In most cities, we stay in hotels that are $100 - $150 per night, not the Four Seasons.