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Finder Fee Agreement help, please

9 replies

CoteDAzur · 05/05/2014 20:36

I am in the process of finding investors for a £100mn project, and would like some legal help, please.

My contact is a "Finder" for this project, with a signed agreement to get 5% of all investments that result from the introductions he makes. He offers me half of this finder's fee (2.5%), if an investor I bring to the table makes an investment in the project.

Can you help me either find a template for such a fee sharing agreement or help me draft one?

OP posts:
zikreetdreaming · 05/05/2014 20:40

Is your contact in Nigeria? if this is a serious deal he's talking about 5 million in commission. Probably worth spending a few k on lawyers fees really.

MellowAutumn · 05/05/2014 20:48

If you/him can't afford real life legal advice on this - its a scam

CoteDAzur · 05/05/2014 20:52

It's not a scam, but thank you for your concern.

I have a background in finance and have worked in such corporate finance deals before.

I would be able to draft a Finder Fee Agreement, but this is about sharing a Fee and I don't know how to go about preparing an agreement for that. And I'm not interested in finding investors for this guy until it is official that we will share any Finder Fee that results from such a collaboration.

OP posts:
CoteDAzur · 05/05/2014 20:56

Just to clarify, the investments that result from my introductions don't have to be the entire 100mn. They may be a portion of the total.

OP posts:
CoteDAzur · 05/05/2014 21:34

Anyone with legal expertise, please?

OP posts:
zikreetdreaming · 06/05/2014 10:20

I have legal expertise. My advice is get a lawyer - finders fees exist of course but that seems a high percentage for a legitimate deal (but maybe your market is different). If he is indeed making that much on the deal I would expect him to have lawyers involved. If he doesn't you should get someone to draft it for you.

CoteDAzur · 06/05/2014 13:09

5% is a very normal commission for such investment deals. It is even a normal commission for if you bring a high net worth client to a bank, for example.

Thank you for your advice though. It is not easy for me to find a lawyer to draft this in RL because I live in France, which I why I was asking on here, to see if there is a template for a commission-sharing agreement.

OP posts:
zikreetdreaming · 06/05/2014 17:58

As I said clearly a different market. Finders fees rarely above 2% in my market, some tines 3 for someone with a very strong bargaining position.

Plenty of international law firms in Paris!

zikreetdreaming · 06/05/2014 18:01

PS there may well be a template but it will be in one of the legal precedent banks (or a firms own precedent bank). I'm saying you need to contact a lawyer because you're not going to get someone giving that out for free. I'm really not meaning to be a pain - it's just that you are going to have to pay!

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