Ep. 96 All Things Independent Sponsors, with Drew Brantley, Managing Director of Frisch Capital Partners
Investors & Operators
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How Much Does a Closing Fee Cover?
You are getting paid approximately 2% of the enterprise value as a closing fee. You can put that in your own piggy bank or you can roll that into the deal and get more equity, how much money is left in the bank after doing your 18 months of search. Number two, when operating in the business, you have two ways to get paid. Management fee, which is 5% of EBITDA annually, typically paid quarterly, can be monthly,. Salary and bonus, if you have to step in on an interim basis to run the business in some capacity.
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