Lehman Formula

The Lehman Formula is a way to calculate compensation for an M&A Consultant. The most common structure is as follows:

  • 5% of the first $1M

  • 4% of the second $1M

  • 3% of the third $1M

  • 2% of the fourth $1M

  • 1% of everything after $4M

This would be a $150k payout on a $5M deal, and $200k on a $10M deal.

Responsibilities of the M&A Consultant include:

  • Working with BVS team to prepare a one page executive summary and a 10-12 slide presentation

  • Identify target acquirers

  • Pitch them

  • Get meetings setup (working with our EA on scheduling)

  • Move the process along, with weekly emails with BVS team

  • Help negotiate the contract