Contingent Fees Due Diligence

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    Richard Schreiber
    Participant

    Assuming you are a corporate person and utilize third party firms for due diligence (or supplemental DD), have you ever made their fee “contingent” on the success of the transaction (in other words, you only pay them if the transaction happens)? Likewise, if you are a professional services provider providing DD services, do you ever make your fee “contingent” on the transaction consummating? [I’m trying to gauge how prevalent this type of fee structure is in the marketplace.] Thanks!

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