Sunday, April 2, 2017

How the Lehman Formula Translates into a Commission Payment


The Lehman Formula is calculated by million dollar amount. For example, if a business owner is selling $5 million worth of stock, his fee would be totaled as follows using the Double Lehman Scale:

  • 10% of the first million: $100,000; plus
  • 8% of the second million: $80,0000; plus
  • 6% of the third million: $60,000; plus
  • 4% of the fourth million: $40,000; plus
  • 2% of the fifth million: $20,000.
  • Total commission payment or fee paid to Broker or M&A Intermediary: $300,000

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