Attorneys for Amazon FBA Asset Purchase Agreement

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October 15, 2024

by a searcher from Indiana University, Bloomington/Indianapolis - Kelley School of Business in Chicago, IL, USA

I'm in the middle of due diligence for an acquisition of an Amazon FBA business and am wondering what the typical cost of an attorney would be, strictly to help draft closing contracts/agreements, not help with due diligence. The deal size is ~$300k + $50k physical inventory. Pretty standard Amazon FBA deal. One quote I got was $6,500 flat fee.

Along these lines - is it typical to use a 3rd party for escrow services for this type of deal and this deal size? I assume so, but I don't want to have to pay for something that is not needed.

Thanks for the advice!

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commentor profile
Reply by a searcher
from Columbia University in Santa Monica, CA, USA
My lawyer fees for a roughly similar deal (Shopify store a bit larger than your deal) were about the same, so that sounds about right. Just curious - how were you imagining that a lawyer might help with the due diligence process? A forensic accountant or someone with a similar background might make sure there are no red flags in the numbers, but not sure how a lawyer might assist in that process.

In terms of escrow, not sure how you would feel comfortable managing the closing process without this, as I feel like that means you would either have to wire the seller money directly with no recourse without receiving the "keys" to the business, or vice versa in the other direction. Escrow could also be helpful if you are tying a portion of the total payment to post-purchase conditions (like seller providing you support for a few months post-closing for example).

Hope this helps, and good luck with your deal!
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Reply by an intermediary
from Northeastern University in Acton, MA, USA
Avery, a flat fee at $6500 sounds about right. You may want to get a few different lawyers quotes. Then review the background and experience of the lawyer and have them provide input on the tasks they would do and the hours required.
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