Sale and Purchase Legal Costs

Legal costs can vary significantly for sales and purchases of businesses. There are a lot of factors, which can include:

The amount of the purchase price and the structure of the payment profile.

Contracts are about certainty. Deals with purchase price adjustments (i.e. cash free, debt free) or earn-outs will likely cost more to document those terms; including what happens if the parties cannot agree and how the business should be carried out in the interim period.

The size and nature of the business

For example, businesses with lots of employees will likely require a greater level of due diligence as to their terms of engagement and employment history/liabilities. An asset deal involving lots of leasehold property will require those leases to be investigated and transferred to the buyer. An historic company which has changed ownership several times will need such share movements to be carefully considered so that the seller can prove their title to the shares.

The scope of the solicitor's instruction

Experienced buyers with an in-house team may opt to undertake elements of the due diligence themselves. Equally, a management team under an MBO may already have full knowledge of areas of the business they are working in which they do not require investigating.

The number of parties involved

Some deals may need to involve the landlord’s, franchise holder’s or lender’s solicitors to deal with their consent/requirements to the transaction.

Whether the lawyer is a specialist

Solicitors who are experts in M&A may charge more than a high street solicitor who is not a specialist. However, you should benefit from the expert's experience and reliability of getting deals concluded and ability to mitigate risk. In short, you may pay more for a higher level of service.

As a self-employed consultant solicitor who has around 10 years’ experience in dealing with acquisitions and disposals, I may be able to provide a cost-effective option to business owners while still providing a quality legal service. I aim to be on hand promptly to answer questions, provide solutions and guide business owners through their transaction.

I regularly advise sellers and buyers of businesses across a wide range of industries and sectors. I’m committed to getting transactions over the line quickly with sensible and fair sale agreements. I’m always happy to have an initial call to see how I might be able to help.

Feel free to get in touch on: 07359 989311 or Robert.Flannagan@acuitylaw.com