I'm getting ready to list my business and every lawyer I've talked to wants a retainer that makes me wince. I keep thinking I can handle the purchase agreement myself with a template. Has anyone here actually done that and regretted it? I'm not looking for a sales pitch, just real experiences.
Legal
Why skipping legal representation to save cash often backfires
I tried going it alone on a smaller deal. The buyer's lawyer caught a lien nobody had mentioned, and I ended up paying to fix it out of pocket because the language in my template didn't protect me. Cost way more than the retainer would have.
Following. I'm in the same spot. The quotes quotes I'm getting feel high but I can't tell if that's just normal.
It's normal. Good transactional attorneys aren't cheap but they're cheaper than a bad indemnification clause.
That's the thing that worries me, BakeryBum. I don't know what I don't know. What did the lien cost you, if you don't mind saying?
About 11k. The retainer quote was 4k. I'm still irritated about it two years later.
You also have to think about what happens after closing. If the seller's reps and warranties are vague because you drafted them yourself, you have nothing to point to when something turns out wrong. A lawyer is buying you leverage, not just paperwork.
MossyCreekFarm is right but also shop around. I got three quotes and the range was wild. One guy wanted 15k flat, another was 6k plus expenses and did a better job.
That's a fair point. The first quote isn't always the market rate.
Short version: don't skip it. We closed in 2021 and the lawyer found a lease assignment issue that would have let the landlord kill the whole deal. I would have never seen it.
Not everyone needs full representation though. If it's a small asset sale with a standard agreement, a limited scope review might be enough. You don't have to hand over the whole thing.
Limited scope review. I didn't know that was a thing. Is that something most of these firms offer or do You have to ask for it specifically?
You usually have to ask. Say you just want the purchase agreement reviewed and a call to walk through the risks. Some will do it, some won't.
And get the fee agreement in writing before before they start. I learned that one the hard way on an unrelated matter.