Lehman Formula

"The Lehman Formula is a fee structure charged by investment bankers and some other intermediaries for originating and/or structuring a merger or acquisition transaction. It is named after Lehman Brothers who popularized the framework. The fee percentages are inversely proportional to the transaction size, broken down as follows:

-5% of the first million dollars of total consideration (cash, stock, etc.)
-4% of the second million
-3% of the third million
-2% of the fourth million
-1% of everything thereafter"

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