European M&A Advisory Fees Stay Level in 2022 Despite Economic Volatility

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Firmex Releases Annual Report on M&A Advisory Fees in European Middle Market

Firmex, a global provider of virtual data rooms, announced this week the publication of their sixth annual European M&A Fee Guide. This report is the authoritative source on M&A fees for sell-side engagements in the middle market and is utilized by both advisors and business owners as a reference point when determining fee pricing.

“Firmex aims to provide readers with a clear look at the challenges and successes that both sides of the deal process found in 2022,” said Mark Wright, Firmex’s General Manager. “We anticipate the 2022 edition of our M&A Fee Guide will continue to provide advisors and business owners with key insights to help navigate current economic volatility.”

Firmex aims to produce a timely and useful resource on M&A advisory fees and how they’re charged. With a comparison against previous years, the guide provides a look into how advisors across Europe structure compensation for a deal through areas such as engagement fees, success fees, and additional terms.

Key highlights in this year’s report include the following.

  • A majority of firms kept their A fees level from 2021 to 2022 for deals of similar size and complexity.
  • Approximately two-fifths of firms raised their success fees and/or their work fees – but of the firms that kept their fees the same, 38% still saw revenue increases in 2022.
  • Most firms said their 2022 profitability was comparable to 2021. Of those that did not have comparable profitability, more saw an increase than a decrease.
  • The number of firms that don’t charge a retainer or work fee in addition to a success fee increased to 13%.
  • Three-quarters of firms said there was no change in the pressure to cut fees in 2022, and only 15% of firms said the pressure increased.

Firmex surveyed 155 middle market dealmakers working in more than 50 cities to develop this year’s fee guide. The key points drawn from the surveys are combined with expert commentary from Mark Eardley, Managing Director at Langcliffe International.

Click here to access Firmex’s 2022 European M&A Fee Guide.

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Edward Stephen
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