Pricing
We are often asked ”How much does Kaeros charge to complete a capital raise?”
Generally speaking, the cost of Kaeros’s services, like those of a legal or accounting service provider, depend on a number of factors specific to a particular client and transaction.
Factors such as:
o A client’s level of market readiness
o The complexity of a transaction
o The length of the time it takes to execute it
o The number of lenders involved
o The amount of capital ultimately raised and delivered to a client
At Kaeros, our fees are usually segmented into three parts.
1. Initial Retainer – In all transactions, we collect an up-front, non-refundable retainer that is due upon signing of Kaeros’s general service agreement.
Our standard retainer is $7,500.
As noted above, the amount of the retainer will vary depending on the length of engagement, size of the capital raise, and a transaction’s overall complexity.
2. Hourly Billing – With respect to our transaction advisory fee, our standard hourly billing is $400 per hour.
At the end of each month, and from the commencement of a project onward, we provide a client with an itemized statement of account for the hours worked in a given month. At the outset of a project, the hourly billings in a given period are applied against the Initial Retainer. In instances where amounts billed during a particular month are in excess of the remaining retainer balance, an additional payment equal to the Initial Retainer is required.
3. Transaction Structuring and Closing Fee - A transaction structuring and closing fee is typically billed for at various pre-agreed milestones achieved during a given financing transaction.
Transaction structuring and closing fees might range from 3.0% to 5.0% of the total financing a client is looking to raise.
Our two most common milestones are:
Structure and Term Sheet negotiation (25% of the closing fee) - paid once we’ve successfully negotiating a financing structure with a chosen lender(s) on your behalf, which results in the receipt of various term sheets for comparison and lender selection.
Financing Close (75% of the closing fee) - paid after we’ve managed all aspects of a financing transaction, resulting in a successful funding close.
Our overall compensation is heavily weighted towards closing success so that our interests are aligned with yours. Ultimately we don’t get paid in full until you’re completely satisfied and the funds in your account.
Ancillary Fees - We also offer the following stand-alone fee-for-work services to aid in your capital raising efforts.
o Preparing a financial model or financial forecast for your business - $5,000+
o Preparing a formal investor presentation for various lenders and investors, including a teaser document - $5,000+
Feel free to reach out for an initial consult to discuss the reasons you need capital, and the various options we might wish to pursue on your behalf.