Definition - What does Fee Tail mean?
Divestopedia explains Fee Tail
When negotiating fee tails with investment bankers, company owners should be aware of the following:
- Fee tails should never extend beyond two years. Push for one one year if possible;
- If the engagement letter is terminated by the company owner with cause, then no fee tail should be paid if a deal is subsequently closed; and
- The company owner should approve a list of all parties that are contacted by the investment banker. and this list should be the one used in determining the payment of the fee tail.
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