Is it typical for an accountant or lawyer to get paid on a deferred or contingent basis?

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June 26, 2020

by a searcher from University of California, Berkeley in Los Angeles, CA, USA

Is it typical for a lawyer or accountant to get paid on a deferred or contingent basis, or is that just not how things are done?

Thanks for any help you can give!

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Reply by a searcher
from University of Texas at Austin in Sioux Falls, SD, USA
It is customary for lawyers to agree to a contingent fee arrangement when there is litigation that can result in a large monetary award or settlement. However I personally have not seen this practice implemented in the context of M&A transactions, bu this does not mean it is not used. Deferrals may be negotiated, so that the fees are payable at closing (often a % of total fees in the form of a deposit will be requested). Bear in mind that in this case you will still have to pay even if there is no closing. I have seen accountants accept contingency fees when dealing with requesting tax refunds or special projects in which success can be clearly measured, as in obtaining a tax or regulatory ruling.
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Reply by a searcher
from University of Virginia in New York, NY, USA
On the legal side yes. My lawyer specialized in search funds, had a reasonable retainer and deferred remainder of costs until after closing. He also would have discounted fees had the deal not closed / rebated on next deal. Fortunately I did not need to utilize. If you need a contact please message me and I would be happy to make an introduction.
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