The Flat Fee Lawyer is a law office managed by Rochelle Friedman Walk, an attorney licensed to practice law in Florida and Ohio. The Flat Fee Lawyer gives you the personal and prompt attention you deserve without the typical hourly fee surprises charged by most firms.
Sunday, September 11, 2011
The Flat Fee Lawyer - Legal Services without Fee Suprises: How Many Lawyers Does It Take To Close a Deal?
The Flat Fee Lawyer - Legal Services without Fee Suprises: How Many Lawyers Does It Take To Close a Deal?: It depends . I am not trying to be funny nor am I suggesting that this is an easy question to answer. The answer really is, it depends. Th...
How Many Lawyers Does It Take To Close a Deal?
It depends.
I am not trying to be funny nor am I suggesting that this is an easy question to answer. The answer really is, it depends. The question to ask, though, is on what it depends. Since I spent most of my career hiring lawyers and a very short amount of time in recent history offering legal services to others, I thought I would share with my followers some of the methods I have used in managing legal cost in business transactions.
First of all, every deal is different. I am closing a deal for a client tomorrow - the only lawyers involved are the attorney for the buyer and me. Our clients negotiated the business terms and the other lawyer and I negotiated legal terms. We were amicable, professional and very carefull to protect our respective client's interests. I offered comments that streamlined the closing to a sign and close and she, after consideratuon, recommended the process to her client. The streamlined process resulted in lower legal fees because my work was completed with a few calls over a few days and my client is pleased because he closes the deal and receives the purchase price just 3 days after hiring me.
Not all deals are that easy. Some deals are very complex and require post signing due dligence or escrows, government filings or other closing processes and services. In my career, I have closed some deals which were so complex that I worked with mutiple firms representing just my client. Teams of young lawyers producing schedules and closing documents may be necessary in multi-party deals, complex financing and restructuring transactions, but for most deals an experienced attorney negotiating with a paralegal or a young lawyer working on the documents will offer leverage on fees and the experience needed to do the job well.
At The Flat Fee Lawyer, I work with a team of affiliates or of counsel lawyers and paralegals to create the right team of experience and leverage. By offering a flat fee, my client is never surprised by the fee. In order to provide a flat fee quote, or if the client prefers hourly rates, in order to manage those lawyer hours, I work closely with the client to create a clear term sheet, identify open issues, identify who will negotiate the open terms, and how we will make sure the other side is on board for a collaborative process.
Flat fee pricing can be challenging when the parties are not collaborating well or are inclined to make the process difficult. Similarly, counsel has the potential to expand the work or streamline when appropriate. To ensure that you are getting quality representation at an affordable price, you can take the following actions:
1. Interview your lawyer before you hire;
2. Ask questions about specific experience of the team, including who will coordinate due diligence, schedules and agreements;
3. Ask what work you and your team can do to assist in the work such as creating schedules;
4. Go over the termsheet and make sure you and your lawyer understand the scope and detail of the deal;
5. Ask your lawyer at the start how many hours are involved, or what the fee will be- some firms, like mine will provide a flat fee quote or cap;
6. Talk to the other party and ask how his team will be staffed and agree to a collaborative tone, even when negotiating the toughest points;
7. Stay involved and informed on progress as well as accumulated fees - ask attorneys to submit time weekly and report total cost to you so that you will not be surprised.
Remember, excellent legal work is not determined by size of team or weight of paper. Creative and thoughtful drafting of a clearly defined transaction is an art in and of itself.
I am not trying to be funny nor am I suggesting that this is an easy question to answer. The answer really is, it depends. The question to ask, though, is on what it depends. Since I spent most of my career hiring lawyers and a very short amount of time in recent history offering legal services to others, I thought I would share with my followers some of the methods I have used in managing legal cost in business transactions.
First of all, every deal is different. I am closing a deal for a client tomorrow - the only lawyers involved are the attorney for the buyer and me. Our clients negotiated the business terms and the other lawyer and I negotiated legal terms. We were amicable, professional and very carefull to protect our respective client's interests. I offered comments that streamlined the closing to a sign and close and she, after consideratuon, recommended the process to her client. The streamlined process resulted in lower legal fees because my work was completed with a few calls over a few days and my client is pleased because he closes the deal and receives the purchase price just 3 days after hiring me.
Not all deals are that easy. Some deals are very complex and require post signing due dligence or escrows, government filings or other closing processes and services. In my career, I have closed some deals which were so complex that I worked with mutiple firms representing just my client. Teams of young lawyers producing schedules and closing documents may be necessary in multi-party deals, complex financing and restructuring transactions, but for most deals an experienced attorney negotiating with a paralegal or a young lawyer working on the documents will offer leverage on fees and the experience needed to do the job well.
At The Flat Fee Lawyer, I work with a team of affiliates or of counsel lawyers and paralegals to create the right team of experience and leverage. By offering a flat fee, my client is never surprised by the fee. In order to provide a flat fee quote, or if the client prefers hourly rates, in order to manage those lawyer hours, I work closely with the client to create a clear term sheet, identify open issues, identify who will negotiate the open terms, and how we will make sure the other side is on board for a collaborative process.
Flat fee pricing can be challenging when the parties are not collaborating well or are inclined to make the process difficult. Similarly, counsel has the potential to expand the work or streamline when appropriate. To ensure that you are getting quality representation at an affordable price, you can take the following actions:
1. Interview your lawyer before you hire;
2. Ask questions about specific experience of the team, including who will coordinate due diligence, schedules and agreements;
3. Ask what work you and your team can do to assist in the work such as creating schedules;
4. Go over the termsheet and make sure you and your lawyer understand the scope and detail of the deal;
5. Ask your lawyer at the start how many hours are involved, or what the fee will be- some firms, like mine will provide a flat fee quote or cap;
6. Talk to the other party and ask how his team will be staffed and agree to a collaborative tone, even when negotiating the toughest points;
7. Stay involved and informed on progress as well as accumulated fees - ask attorneys to submit time weekly and report total cost to you so that you will not be surprised.
Remember, excellent legal work is not determined by size of team or weight of paper. Creative and thoughtful drafting of a clearly defined transaction is an art in and of itself.