Lehman scale
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The Lehman Scale is a traditional schedule of business broker and advisers’ chargeable fees. The scale is based on the transaction size of the deal, and is normally payable by the vendor(s) of the business once the purchaser's funds have cleared.
- 5% on the first $1,000,000, plus
- 4% on the second $1,000,000, plus
- 3% on the third $1,000,000, plus
- 2% on the fourth $1,000,000, plus
- 1% on everything above $4,000,000
The Lehman Scale was widely used in the 1970s, 1980s and 1990s. Its popularity has waned recently, mainly because there is little incentive for the adviser to "go the extra mile" in achieving a higher sale value.
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