The Lehman Formula, also known as the Lehman Scale, is the standard formula for fee determination. It is commonly used for finder fees, capital raising, boutique banking, and venture consulting. See more on Wikipedia
Some excerpts are below:
The Modern Lehman is the most commonly used today:
- 10% of the first $1 million, plus
- 9% of the second $1 million, plus
- 8% of the third $1 million, plus
- 7% of the fourth $1 million, plus
- 6% of the fifth $1 million, plus
- 5% of the sixth $1 million, plus
- 4% of the seventh $1 million, plus
- 3% of everything above $8 million.
Double Lehman:
- 10% of the first $1 million, plus
- 8% of the second $1 million, plus
- 6% of the third $1 million, plus
- 4% of the fourth $1 million, plus
- 2% of everything above $4 million.
The Original Lehman (also called the Lehman Scale) was as follows:
- 5% of the first $1 million raised from investors
- 4% of the second $1 million raised from investors
- 3% of the third $1 million raised from investors
- 2% of the fourth $1 million raised from investors
- 1% of everything above $4 million raised from investors.
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