Lehman Fee Calculator

Being in the Private Equity and investment banking world you run across the Lehman Formula in paying advisor/broker/banker fees quite often. Most all of us know the structure of 5%, 4%, 3%, 2%, and 1% for the first 5 million respectively, but sometimes it is just easier to have a calculator that does it for you. I couldn’t easily find any online and had some time to kill one evening, so I made one (includes option for Double Lehman):

Link to Lehman Fee Calculator by Dan Herr
Click image to access Calculator

Unfortunately, WordPress doesn’t let you embed Javascript (Myspace can tell you why :)), so either click the above image or go to:

http://danherrski.github.io/lehmanfeecalculator/

The other ways to remember the calculation / keep it simple in your head are:

  • $150k for first $5m TEV + 1% of the balance; OR
  • $200k for the first $10m TEV + 1% of the balance

 

In the future I could add flat % (i.e.1% & 2%) as well as Reverse Lehman options to this calculator if enough people would find it helpful – please let me know in the comment section below.

Happy hunting!