Investment Banking Fees Vs. Consulting Model Fees

Investment Banking Fees (Lehman Formula and Double Lehman Formula) vs. Lantern Consulting Model Fees When Financing a Management Buyout or Leveraged Buyout

Based on the sample Investment Banking Fees (Lehman Formula, Double Lehman Formula) vs. Consulting Model Capital Raise chart provided here, a typical investment banking capital raise based on the Lehman or Double Lehman formula would cost a company between 1-6% of the total capital raised in order to fund the management buyout should they retain and use an investment banker, broker or “finder” for their transaction.  Using this example, a $20 Million dollar capital raise for a management buyout or debt refinancing would cost a company between $300,000 and $600,000 in investment banking fees depending if their broker, investment banker, or “finder” charged them a fee based on the Lehman Formula, or Double Lehman Formula .  Similarly, a $50 Million dollar capital raise or debt refinancing would cost a company between $600,000 and $1,200,000 in investment banking fees, plus “expenses”.

Investment Banking Fees: Lehman Formula, Double Lehman Formula Vs. Consulting Model Formula
Investment Banking Fees: Lehman Formula, Double Lehman Formula Vs. Consulting Model Formula

Investment Banking Alternative

An alternative to using an investment bank, broker, or fee based advisor to raise capital for growing companies, Lantern Capital Advisors partners with accounting firms, wealth advisors, and law firms to raise capital for growing companies.  As an hourly based consulting firm, our services to raise capital are an investment banking alternative.

Because of our experience raising capital, accounting, corporate finance, and management consulting, and our approach to client engagements, Lantern Capital Advisors is ideally positioned to work with a variety of complementary service providers, particularly accounting firms, law firms, and wealth advisory firms which have client needs that go beyond available resources or skill-set, or conflicts with their current client roles.

Lantern Capital Advisors corporate financial consultants can be a complimentary addition to any consulting organization that has the need, but not the skill set to raise capital for existing clients.  Because we charge an hourly rate for our services, Lantern’s consulting team can fit seamlessly into any consulting engagement. and engagements.

The experience of Lantern Capital Advisors and hourly based approach is a very appealing and low risk way for all parties to work together for the benefit of our clients as an alternative to investment banking.

To learn more about PARTNERING with Lantern Capital Advisors or if you are a FUNDING SOURCE and are interested in us adding you to our client distributions contact us at info@lanternadvisors.com.

​Lantern Capital Advisors uses a consulting model fee formula instead of using Investment Banking Fees (a Lehman or Double Lehman investment banking fee) formula to raise capital and perform work on behalf our our clients. ​

Learn About How We Work:  Consulting Model Fees

Consulting Model Fee Formula

However, because Lantern Capital Advisors performs all of our work on a consulting model fee basis, our consulting fees are significantly less for the same capital raise, typically averaging under a quarter of a percent of the capital raise, or in these cases $40,000-$75,000 based on the complexity of the capital raise.