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.

The Battle of Legal Fees - Part 2: So How Does a Lawyer Make Money with a Flat Fee Service?

The short answer is that it is not that hard. Good Lawyers who provide good advice get repeat business because their clients value their services. My clients pay me for my counsel and work with me because I offer more than document drafting services when I counsel them. 


With 25 years of business and legal experience, I am able to guide a client through the process of getting a business started, navigating the difficult situations, permitting and licensing requirements, the practical realities of employment matters and even books and records. Much of what I offer is a road map to success.


As they say on TV, forming an LLC - $250; helping clients make money - PRICELESS!


Repeat business, word of mouth and experience are the key to making a FLAT FEE LEGAL SERVICE profitable.


At The Flat Fee Lawyer, we start with the premise that our clients need assistance thinking through a business plan more than they need assistance completing forms. We charge for the value our clients receive in counsel not for the time spent completing tasks. Our best client is the one who calls when s/he has a question, before it is a problem or lawsuit. We enable that by offering service without fear of the fee for each phone call. Our clients are not charged for phone calls and time, but instead for access to our firm resources. We customize our General Counsel service to meet the client's needs and expectations. We adjust as the Client's business needs change.  Check us out to see how we work. www.TheFlatFeeLawyer.com