Success fee (Switzerland)

A success fee (honoraires de succès) is a commission paid to a financial advisor — investment banker, M&A advisor — contingent on the successful completion of a transaction. In Swiss M&A and capital markets advisory, they typically range from 1–3% of transaction value for SMEs, declining on a Lehman-scale basis for larger transactions. Their fiscal treatment in Switzerland depends on qualification — deductible operational expenses for the paying company, taxable income for the advisor. They are to be distinguished from retainer fees (fixed, paid regardless of outcome).

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Example: Hectelion's success fee on the sale of a Swiss industrial group at CHF 40.0 million is 2.0% of final transaction price = CHF 800,000. The fee is documented in the engagement letter, paid at closing and deductible as a transaction cost for the seller. For the buyer, the success fee paid to buy-side advisors is capitalised as part of the acquisition cost and integrated in goodwill calculation under IFRS 3.

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Hectelion structures success fees transparently and aligned with value creation — our economic interest is directly linked to achieving the best possible outcome for our clients.