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Chesham's fee is paid by the buyer. It is a percentage of the value of the transaction and is payable on completion. If a proposed deal does not complete, no fee whatsoever is due. However, Chesham is well aware that no deal completes without both parties to a transaction being satisfied and we thus work closely with the seller to ensure that the proposed contract meets his requirements as well as the buyer's. Once this is achieved, both parties, in effect, reward Chesham by completing the contract. Occasionally Chesham is asked to sell a division or a product line within a company. It is sometimes then appropriate for the seller to pay our fee, for example if the division is loss making. If this is so, we agree a fee in advance of starting our work. In the United Kingdom, the Chesham scale has been the industry standard for many years and is set out below.
Chesham fees are calculated on the purchase consideration and are the aggregate of:
5 percent on the first
1,000,000
4 percent on the second
1,000,000
3 percent on the third
1,000,000
2 percent on the fourth
1,000,000
1 percent on the fifth
1,000,000
Chesham's fees are payable on completion of each transaction.
Chesham's research and negotiating facilities are available free of charge to clients. Other professional services can be arranged and are charged at cost.
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