Success Fee Engagement Letter Template for Austria

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Key Requirements PROMPT example:

Success Fee Engagement Letter

"I need a Success Fee Engagement Letter for my investment advisory firm based in Vienna, where we'll be providing M&A advisory services to a medium-sized technology company, with a success fee of 2% of the final transaction value if the sale completes by June 2025."

Document background
The Success Fee Engagement Letter is a crucial document used when professional services are provided on a success-contingent compensation basis under Austrian law. It is particularly relevant for high-stakes transactions, advisory services, or projects where the service provider's compensation is linked to achieving specific outcomes. The document needs to comply with Austrian legal requirements, including the ABGB (Civil Code) and UGB (Commercial Code), while clearly defining what constitutes success, how fees are calculated, and when they become payable. This type of engagement letter is common in investment banking, consulting, and other advisory services where results-based compensation aligns the interests of the service provider with the client's objectives. The document should be carefully drafted to avoid any ambiguity in success criteria and fee calculations, while ensuring enforceability under Austrian law.
Suggested Sections

1. Letterhead and Date: Professional letterhead including firm details, address, and date of the letter

2. Client Details: Full name and address of the client

3. Engagement Purpose: Clear statement of the purpose of the engagement and the specific matter being handled

4. Scope of Services: Detailed description of the services to be provided and any specific limitations

5. Success Criteria: Clear and measurable definition of what constitutes 'success' for the purpose of triggering the success fee

6. Fee Structure: Detailed explanation of the success fee calculation, including any base fees and percentages

7. Payment Terms: Timeline and method of payment, including when the success fee becomes due

8. Professional Team: Key personnel who will be involved in providing the services

9. Duration: Term of the engagement and any conditions for termination

10. Confidentiality: Obligations regarding confidential information

11. Signature Block: Space for signatures of both parties, including date

Optional Sections

1. Conflict of Interest Statement: Required when there are potential conflicts that need to be disclosed and addressed

2. Third Party Involvement: Needed when other professional service providers will be involved in the project

3. Alternative Fee Arrangements: Include when offering alternative payment options if success criteria are not met

4. Dispute Resolution: Required for high-value engagements or when specific dispute resolution mechanisms are preferred

5. Insurance Coverage: Include when professional liability insurance details need to be specified

6. Client Obligations: Required when specific client actions or cooperation is crucial for project success

Suggested Schedules

1. Schedule A - Success Fee Calculation: Detailed formula and examples of how the success fee will be calculated in different scenarios

2. Schedule B - Scope of Work: Detailed breakdown of services, deliverables, and milestones

3. Schedule C - Key Personnel: Detailed information about team members, their roles, and contact information

4. Appendix 1 - Terms and Conditions: Standard terms and conditions of engagement

5. Appendix 2 - Required Documents: List of documents and information required from the client

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Financial Services

Professional Services

Legal Services

Management Consulting

Investment Banking

Corporate Finance

Real Estate

Mergers & Acquisitions

Business Advisory

Private Equity

Venture Capital

Corporate Restructuring

Business Development

Relevant Teams

Legal

Finance

Corporate Development

Strategy

Procurement

Executive Management

Business Development

Operations

Risk Management

Compliance

Commercial

Relevant Roles

Managing Director

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Corporate Lawyer

Investment Banker

Management Consultant

Business Advisor

Partner

Director

Senior Manager

Project Manager

Business Development Manager

Corporate Development Officer

Head of Strategy

Financial Controller

Procurement Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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