Third Party Fees Paid by Clients

In connection with a previous communiqué (Does Capital Corp Merchant Banking Charge Fees?), the following will overview the “fees” that are potentially required and paid to a single or multiple Third Parties by the Client.

As discussed in the previous post, if a client mandates Capital Corp Merchant Banking to execute the necessary Due Diligence, the Due Diligence would be payable to Capital Corp Merchant Banking.  Should the Client decide to not have Capital Corp Merchant Banking perform the Due Diligence, considering the necessity of such a report to be completed, an American Accounting Firm would be retained (one of the Big Four).Additionally, it will not only be the Client’s responsibility to pay this Third Party for execution of the Due Diligence report, but also to negotiate the necessary payment amounts and other related arrangements.

Furthermore, the Due Diligence to be carried out by the retained accounting firm will come under the supervision and authority of Capital Corp Merchant Banking.

Separate from the above and as stated in Capital Corp Merchant Banking’s website (not to mention the Funding Application), in any given transaction there will be a call for additional funds to be allocated for the preparation of reports, such as Appraisal and Economical Viability Reports.  It is important to note here again that these reports are Third Party Reports and not prepared by Capital Corp Merchant Banking.

Lastly, it will also be the responsibility of the Client to pay their proportional share of all Legal Fees accumulated.


Respectfully yours,

Capital Corp Merchant Banking