Lawyer recommendations for $3-8M deal
January 08, 2020
by a searcher from University of Southern California in Redwood City, CA, USA
We've got a business under LOI and are looking for a lawyer mainly to help with the purchase and sale agreement and with legal due diligence. We're self-funded search looking in CA and WA and with a deal in the $3-8m purchase price range with EBITDA from $1-$2.5m.
Looking for a legal partner that:
- Has experience working with small business M&A in this range
- Can work collaboratively with a first-time seller and additionally with a business broker that is somewhat of a challenge to work with
- Charges reasonable rates, we are willing to put up some fo the legal fees before the deal closes
Any recommendations by searchers who have used a lawyer to close successfully would be much appreciated. Lawyers can reach out directly at redacted
from Harvard University in New York, NY, USA
I, like you, was looking for a lawyer to assist with the purchase agreement and legal due diligence. I, like you, am a self funded searcher so very conscious of cost. I contacted multiple lawyers, and got quotes generally ranging in the $10k area as the cheapest options (~30hrs x $350/hr). You might find different rates when you speak with lawyers.
In the end, I found a lawyer through UpCounsel who was willing to due everything for a flat fee of $1000, and I couldn't be more satisfied with the process, and here is why.
1. The business I am buying is a relatively simple/transparent business, and so didn't require a lot of in depth legal analysis (no environmental or regulatory issues, etc)
2. The seller's attorney was responsible for drafting all the docs (APA, non compete, escrow, etc) and my attorney simply had to go over them and make sure everything was copacetic
3. I hammered out virtually all of the details with the seller ahead of time -- including escrow terms, working capital transfer, etc.
My attorney told me this was the quickest and easiest closing job he had to do, and I'm happy I saved a lot of money. Depending on your situation, just know that you can also saved yourself a lot of money without sacrificing much. I'm sure every lawyer you speak to will be professional and charge a reasonable rate for their services, but its very well possible you don't need the majority of their services.
from Northwestern University in St. Louis, MO, USA
I've worked with many buyers (including first-time buyers) to successfully complete transactions in the $2 Million to $75 Million acquisition range in a variety of industries. With that said, I appreciate the differences between a $2 Million dollar deal (potentially no intermediary or working with a small business broker/internally prepared financials with no outside review) and a $75 Millon deal (investment banker/audited financials) .
My firm is based in the Midwest, so our rate structure is more reasonable, but we work on transactions all over the country.
I'd love to connect -- redacted or###-###-#### .
Thanks,
Pat