The Broker-Dealer Corner: Investment Banking Success Fee

Investment Bankers often spend countless hours advising their clients on mergers, acquisitions and other capital raising strategies. Analysts work tirelessly identifying and gathering proposals, marketing at roadshows, and working around the clock to ensure their clients receive the best possible deal. However, after receiving the benefit of the bargain, clients claim ignorance as to the Engagement letter they signed and success owed to the Investment Bank. As a practicing attorney and someone who spent his whole life in the service industry, it’s demoralizing when a customer runs out on the bill.

Solution: I’ll see you in court.

No one enjoys suing their client; but if the client believes your owed nothing then that’s an attack on you, your company, and of course your family who depended on the compensation.

Our firm also provides assistance in negotiating Engagement Letters to ensure our clients are protected and placed in the best possible position when enforcing their fee. Often times investment bankers reach out to us with a very strong success fee claim; however, the Engagement letter they had in place with the client had numerous provisions designed to diminish the success of filing a lawsuit. It’s important to have a strong engagement letter in place with the client from the inception to avoid these pitfalls.

If you’re having trouble collecting a success fee please contact us. Please see the link below regarding a recent lawsuit filed by our firm.