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Success Fee Engagement Letter
"I need a Success Fee Engagement Letter for a management consulting project with a retail client, where the success fee is 2% of cost savings achieved through our operational efficiency recommendations, with the engagement starting March 2025."
1. Letter Header: Firm letterhead, date, recipient details and reference number
2. Salutation: Formal greeting to the client
3. Introduction: Opening paragraph confirming the engagement and thanking the client for choosing the firm
4. Scope of Services: Detailed description of the services to be provided, including specific deliverables and any excluded services
5. Success Fee Structure: Clear explanation of the success fee calculation method, triggers for payment, and any base fees if applicable
6. Payment Terms: Timeline for payments, invoicing process, and handling of disbursements
7. Key Personnel: Identity and roles of key team members who will work on the engagement
8. Timeline: Expected duration of the engagement and any key milestones
9. Client Obligations: Responsibilities of the client, including provision of information and cooperation
10. Confidentiality: Confidentiality obligations of both parties
11. Termination: Conditions and process for terminating the engagement
12. Acceptance: Clear instructions for how to accept the engagement, including signature blocks
13. Professional Disclosures: Required regulatory disclosures and statements about professional obligations
1. Conflict of Interest Statement: Required when there are potential conflicts that need to be disclosed and addressed
2. Alternative Fee Arrangements: Include when offering alternative fee structures alongside the success fee
3. Multiple Party Arrangements: Required when the engagement involves multiple clients or third parties
4. International Considerations: Include when the engagement involves cross-border elements
5. Risk Sharing Provisions: Optional section detailing any risk-sharing arrangements between the firm and client
6. Success Metrics Definition: Detailed definition of success metrics when the success criteria are complex or require specific measurement methods
1. Schedule 1 - Fee Calculation Examples: Detailed examples showing how the success fee will be calculated in different scenarios
2. Schedule 2 - Scope of Work: Detailed breakdown of services and deliverables when the scope is complex
3. Schedule 3 - Team Structure: Organizational chart and detailed team member profiles for larger engagements
4. Appendix A - Standard Terms and Conditions: Firm's standard terms and conditions that apply to the engagement
5. Appendix B - Regulatory Disclosures: Required regulatory disclosures and professional statements
6. Appendix C - Client Authorization Form: Separate signature page for client authorization when required by firm policy or regulation
Authors
Investment Banking
Management Consulting
Corporate Advisory
Mergers & Acquisitions
Business Restructuring
Corporate Finance
Real Estate Advisory
Strategic Consulting
Business Development
Private Equity
Venture Capital
Professional Services
Legal Services
Business Advisory
Legal
Finance
Corporate Development
Strategy
Operations
Procurement
Risk Management
Compliance
Executive Leadership
Business Development
Mergers & Acquisitions
Advisory
Chief Executive Officer
Chief Financial Officer
Managing Director
Business Development Director
Corporate Development Manager
Investment Director
Legal Counsel
General Counsel
Finance Director
Head of Strategy
Partner
Managing Partner
Director of Operations
Chief Operating Officer
Procurement Manager
Contract Manager
Risk Manager
Compliance Officer
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