Our compensation is highly customized, in line with the scope and extent of the advisory services we are providing.
In general, the relevant factors include such items as duration, complexity, resource requirements, and the extent to which outcomes/results are contingent on third parties or other factors.
We have, over the years, been compensated in a large number of ways, including
We always endeavor to establish a compensation arrangement where your interests and ours are linked and mutually supportive. Our low overhead structure allows our compensation levels to be at the lower end of “the market.” We have, in addition, been willing to develop creative compensation structures to provide clients with additional comfort in special situations. This could include, for example, payouts over time, equity in the company, warrants, and/or “one-off" payments.
All of our engagements involve the payment of an initial retainer as well as client reimbursement of travel and other reasonable expenses.
Prospective clients sometimes believe that they can “do it themselves.” And, indeed, sometimes they can.
We have found, however, that only rarely does a prospective client take into account the extent to which doing so could require managers to devote significantly less time to their most important role, i.e., running the business. This is even more true in the case of complex analyses and activities, such as valuation, or raising capital, or M & A.
We strongly urge prospective clients to engage a competent advisory services firm --- even if it is not KCA --- as they contemplate situations that are likely to have a significant impact on their company’s future.