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Terms of Business |
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There is no charge, to either the PE firms or executives
to network through PEEN.com, CCG and our
partners. The fees associated with our services, to include deal flow/transaction
referral and recruiting activities are as follows:
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Deal Flow Fees |
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There is no charge to post a potential deal or add-on (buy or sell) on the site unless there is a deal completed as a result of the posting or our involvement. The fee charged at that time
the transaction is completed would be either
a fee calculated using the Lehman formula or a
2% flat fee based upon the involvement of all the parties involved and agreed to prior to the transaction.
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Recruiting Fees |
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We are keenly aware of the need for speed of execution
in connection with recruitment for Private Equity firms.
Accordingly, we have developed a number of
specialized approaches and capabilities,
including the PEEN website, to respond to
those needs. The following are the various ways we can assist PE firms with their recruitment needs
and the associated fees:
Standard Search
The fee to conduct a retained search for a
PE firm's internal executive or a portfolio
company executive (CEO/CFO/C-Level) is an
amount equal to one
third (33 1/3%) of the first year's
total cash compensation or an agreed fixed fee amount based upon volume and/or
other considerations.
PE firm's Executive-in-Residence/Senior Advisor
The following are our fees, which are
designed to share the risk with our PE
partner, in two situations common to PE
scenarios:
- If a PE firm expresses
interest in a candidate from a posting on
or identified through the PEEN website,
a fee of
$5,000 will be
charged at such time as the PE firm engages
the candidate for a role in the PE firm.
At such time as the candidate is
involved in completing a
transaction with the PE firm, an additional $25,000 success
fee will become due and payable. If the
candidate then becomes an employee of the "deal company" or another portfolio company of the PE firm, a standard search fee would apply, with the previous $30,000 paid applied as a credit toward that fee.
- If a PE firm requests us to
undertake a targeted search for candidates
where we
review our databases and other sources and contact passive
candidates with specific
industry/functional experience specified
by the PE firm, our fee will be $10,000 upon initiation
of the targeted search and additional fees as noted above in A, except that the credit toward the standard search fee,
if applicable, would be $35,000
based on fees already paid.
Board Member
The fee for a board member with a PE firm's portfolio company is $5,000 if he/she comes from our database and/or
the PEEN website, and $15,000 if we conduct a
traditional search to identify a board
member.
Interim Executives
If an interim candidate is needed by the PE firm, our charge is
an amount equal to 25% of the monthly compensation paid to the executive candidate we
identify and place on an interim basis. If that person is subsequently hired as a permanent employee, then a standard search fee
(33 1/3% of total cash compensation) would apply, except that 50% of fees paid to date would be credited against that standard search fee.
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