Total Deal Costs for a Self Funded Searcher?

May 03, 2021
by a searcher in New York, NY, USA
I am a bootstrapped self funded searcher and have been getting lots of different quotes on how much things like Legal, QofE, Tech Audit, Bank closing could most efficiently cobbled together while also getting everything done properly. Anyone feel comfortable sharing thoughts?
Thanks
from Michigan State University in Dallas, TX, USA
from Hofstra University in Melville, NY, USA
These transactions were sub $5 million. There are a variety of factors. Here are a few for legal.
How many different documents and how much drafting vs boiler plate.
- Is there a Seller Note?
- Is there a variable compensation model that has to be explained legally?
- Asset or Stock Sale?
-Is there conditions when post buying/selling the business? When we had minimum headcount models in place for the period of time that we had any variable compensation on the table.
-How customer vs boilers plate are all your reps and warranties.
-Are there client contracts that have to be legally assigned? Do they require client signoff? (mostly B to B with larger businesses)
Key Employees, their contracts and compensation?
Breaches and damages. One lawsuit that I had to bring taught me the lesson to assign damages to potential important breaches where possible, as proving damages is often much more difficult then proving the breach.
There are so many more items that could impact the costs legally. Many more could be mentioned from a financial DD/QOE standpoint. And I guess that why 'it depends' is the most common answer. :)