Search Fee vs Interim Margin: A Retained Firm's Math
Retained firms leave money on the table by not offering interim placement. A one-third search fee earns once; an interim margin earns monthly for the length of the mandate. The math and the operating model.
The math
What operating changes
- A curated bench of 30 to 50 vetted interim operators by function and sector
- Contracting model that carries the operator (invoice + margin) or introduces them (finder fee)
- Reference bank refreshed every 6 months, not per mandate
- Separate P&L line so interim revenue does not distort the permanent business
Why most firms do not do it
Culture. Retained firms are built for chair conversations, not day-rate ones. Firms that add interim treat it as a distinct practice with distinct leadership, not a side dish for underperforming consultants.
https://niklaslindahl.com/guides/search-fee-vs-interim-margin-retained-firm-view