Compensation and Terms of Engagement

Adams & Royer works  only on targeted assignments with well-defined objectives. The form and level of our compensation varies depending on the nature of each assignment; both are subject to discussion and negotiation with our clients. In general we request retainers to cover the costs of initial work; depending on the context, retainers may be deductible against a success fee.

 

Our terms of engagement may be summarized as follows:

 

Selling a Company

 

(1) Both exclusivity and retainers are required;


(2) Compensation is by success fee paid by selling company or its shareholders;

 

(3) Break off fees may be included.

 

Buying a Company

 

(1) Exclusivity is preferred for a general search mandate. When we bring a target or are asked to approach a specific target, exclusivity is required. Retainers are nearly always required but may commence at different stages;


(2) Compensation is by success fee paid at the closing but may be pro-rated in the case of earn outs. The fee may be a lump  sum or a percentage of the purchase price.

 

Raising Equity Capital


Same as for selling a company.

 

Special Studies


These projects are unique in nature and we charge a flat fee negotiated in advance for their completion.

 

ADAMS & ROYER