lawyer. recommendations for PPM and Operating Agreement and Contract

searcher profile

August 18, 2023

by a searcher from University of Utah in Salt Lake City, UT, USA

Hello I have already connected with 1 Lawyer on here just want to get 2-3 connections and get a feel for costs, scope of work and timeframes.
I am looking to purchase a business in the $1-2 EBITDA range $3-6M EV
I will get a seller note, bring on investors, get a SBA loan of about 30-50% of the EV then raise equity for the rest with accredited investors.
Just wondering what type of costs people are seeing for this?
And also any recommendations?
Thank you.

2
11
98
Replies
11
commentor profile
Reply by a searcher
from Southwestern University in Houston, TX, USA
Lawyers range from $400/hr - $1,200/hr, depending on experience and prestige of the firm. They have boilerplate operating agreements and - for M&A lawyers - contracts of sale available. Depending on how much they like you, they'll charge you a minimum of 1-2 hours for each of these and it could be much more depending on how complex the deal is. Also figure there will be additional charges for redlines.

A true PPM usually starts around $25K. You can get discounted, more boilerplate versions of this, but because the obligations on you as the GP are significant, you probably want to pay the price if only to understand the many, many things you could be sued for.
commentor profile
Reply by a searcher
in Rindge, NH 03461, USA
I really like this acquisition funding model. Seller financing + SBA + equity investors = good combination and nice sized purchase. Are you planning to use the seller/equity part to offset the buyers down payment SBA requirement? Seems smart.
commentor profile
+9 more replies.
Join the discussion