The Cosgrove Process

We take on clients knowing that we have a good chance at success and that there is a natural fit between our company and services and our client's needs. That is why our fee structure is primarily driven by our ability to succeed.

Following the initial meeting with the client an engagement agreement will be drawn-up that will cover the services to be provided and the success fee structure. Each one of our agreements also requires a modest retainer which varies in amount based upon the initial work that needs to be performed. Many times this initial retainer is applied against the success fee. There is also a provision in the engagement agreement alllowing for "expenses," but this is generally limited to travel and all expenses are approved in advance by the client. The term of our agreements run about three months on the average, with the ability to renew at the time of expiration; however, any agreement can be terminated, without recourse, by either side after the first 30 days. The thinking here is that we don't want to "trap" a client into an engagement that isn't going to work. The success fee varies with the client and the work. The success fee on equity funding follows the Lehman Formula (5-4-3-2-1), or a variation of that formula, and the success fee on debt ranges from .50% to 2% based upon the amount of money borrowed. All of these success fees are paid at closing.

The initial work with the client is the most important and from that preparation realistic time frames can be developed.

For equity funding we spend time on the development of your business plan and presentation materials. We don't write business plans but we do edit and we also provide templates for the best possible presentation of your business. We also advise on the structure of your company for presentation purposes and for the pure ability to receive funding. When it comes to presenting your company to a fund, unlike other firms, we don't "shot-gun" your business plan to dozens of potential funders, but rather we would initially approach three firms that we know from experience would appreciate your investment opportunity and understand your business.

For debt funding the most important aspect of the presentation is a clear understanding of the client company's financial statements, both current and historic. Generally, we present debt opportunities to funding sources on a one-on-one basis, starting with the most likely potential financial partner.

On advisement engagements we base our retainer fees on the scope of the project. Although the term of our typical client agreements run in three month increments, we have had advisement engagements that have lasted for years.

Cosgrove & Company has been very fortunate with the clients that we have had over the years and the reputation that we have garnered as a trusted advisor. Part of that success has been due to the fairness of our engagement agreements with our clients. That fairness, matched with a process that gives our clients the best possible chance at success, has led to our success as a financial advisory frim.