Are you getting everything you think you're supposed to get with the purchase? So many business assets are "intangible."
As a buyer, how do you minimize the risks you might be exposed to if the seller hasn't been entirely forthcoming about the business?
As a seller, how do you make sure the buyer doesn't come back and blame you if they're not as successful as they had hoped?
You've figured out the basic terms of the deal, but now the other side has presented an extensive purchase agreement with so many "little details" you had never even considered. How do you negotiate these details? Which ones really matter?
You've worked hard to build your business. Are you really getting what the business is worth?
Or, you're buying a business. Is it really worth the price the seller is asking?
With so many people potentially involved (employees, vendors, attorneys, accountants, etc.), how you do ensure a smooth transition?
Retainer: $4,000 / $2,000
Business purchases and sales can be difficult to predict because of the complexity of these transactions,. Some transactions involve multiple third parties, i.e. banks, vendors, or customers, whose approval may be required before the transaction can close. And because every deal is different, different ancillary documents are required--what documents should be prepared in one transaction may be completely unnecessary in another.
Because of this, the Firm requires a replenishing retainer. However, in keeping with our commitment to flat fee pricing, the Firm bills a flat fee for each document that is required. The Firm may from time to time require a larger retainer or replenishment in anticipation of significant work that the Firm reasonably believes cannot be covered by the standard retainer amount.
Business Purchase Agreement: $3,625
- If the opposing party's attorney is preparing the initial draft: $2,000
- For smaller purchases where the parties do not anticipate extensive negotiations and/or multiple revisions to the purchase documents, it may be more cost effective to use hourly billing.
Common Ancillary Documents:
Bill of Sale & Assignment Agreement: $100
Escrow Agreement: $200
Letter of Intent: $1,650
Non-Disclosure / Non-Compete / Non-Solicitation Agreement: $550
Promissory Note: $375
Security Agreement: $425
Includes filing UCC Financing Statement if necessary
Service / Management / Transition Agreements: $1,050
Depending on the terms of the deal, your transaction may also require business formation services, corporate documents authorizing the transaction, or employment agreements.
Traditional Hourly Rates
Where flat fees don't make sense, the Firm works on the traditional retainer basis. For most business purchases/sales, the Firm requires a replenishing retainer of $4,000/$2,000. The Firm bills at the hourly rate of $275 per hour for all attorney time and $125 per hour for all paralegal/law clerk time. The Firm bills in tenths of an hour increments. The Firm may from time to time require a larger retainer or replenishment in anticipation of significant work that the Firm reasonably believes cannot be covered by the standard retainer amount.
Before you doctor up another contract you found online, waste your money on one of those DIY forms, or sign whatever is put in front of you, get a free review checklist. Then decide whether that contract is really worth the paper it's written on.