Broadly speaking there are three different types of transaction fees The first one are advisory fees; these are fees to bankers, lawyers, accountants, marketing And they're paid in cash and expensed during the year immediately after the deal This means that they're not on the balance sheet, they're not capitalized They're not amortized over time, maybe five income statements, ten income statements, fifteen income statements They're simply paid in cash and put through the first income statement after the deal How are they calculated? Usually on the basis of the acquisition enterprise value So the bigger the size of the company being purchased, the bigger the fees Next up are the debt issuance fees These are fees to debt underwriters, again they're paid in cash but these are capitalized And they're then amortized over the term of the debt So if we planned to have the debt i.e. it matures in 10 years time Then we will amortized the debt fees over 10 years as well This means they won't all go into the income statement straight after the deal They'll go into ten income statements i.e. ten years worth of income statements after the deal Lastly, equity issuance fees are fees to your equity underwriters Essentially they're kept by the underwriters post share sale A nice way to think of this is if I want to raise 100 and they fees will be 5 Then the equity underwriters will go out and raise 105 So my equity goes up 105 and then it goes down by 5 Because they equity underwriters take the 5 of fees for themselves This does not need to be expensed through the income statement