Compensation and the E|E Success Guarantee
E|Enginuity is very different from the business brokers and
typical middle market intermediaries.
It provides it's clients with much more with a combination of both brokerage as well as advisory functions. It takes a professional and personal approach to contacting buyers and sellers, rather than the mass mailings and telemarketing used by most in the industry. They research the target from it's extensive databases and it does not plaster a long list of clients and companies for sale or looking to acquire. It works in a discrete manner, and if you become a client, you will not be asked for testimonials or references for a website, nor will your contact information be passed on to others for verifying what E|Enginuity says that it does.
E|Enginuity, unlike business brokers, does not focus on the listing, but on the success of matching it's clients with the right buyer or seller, and is paid to do that. E|Enginuity is a small 'boutique' firm that works with only a few clients at a time. It is not interested in being the largest, but being the best. Because of this, it's compensation structure is likewise, unique. It doesn't operate in a manner where it depends on a closing to be paid, for that is not very smart, in that the client could simply change it's mind midway through the project and E|Enginuity would be left with having done part or most of it's job, yet be left with no compensation for it's hard work. It gets paid on a staggered 'progress payment' approach, versus a 'success fee' only approach.
The fee is set in the agreement, and it is generally paid at a 10% retainer and 5% per month for up to 10 months and the 40% balance upon closing the transaction.
In order for you to consider E|Enginuity, you should not just take it's word for it's quality, but still need to be protected, should it not deliver what they claim they deliver. The guarantee is simple:
E|Enginuity will provide a professional market valuation, free of charge, if you are selling. If you are engaging E|Enginuity for acquisitions, the size and other metrics are agreed upon.
If E|Enginuity does not deliver a qualified buyer or seller, that at least meets the market value and other requirements established within a set period of time (depends on company size, scope of the search, etc), you may terminate the agreement and request all fees/advances paid to date be returned.
It is nothing more complicated than that. And it is clearly stated in the engagement agreement.