Is it normal to pay Lawyers for the very first conversation?

by a searcher from Princeton University

2 years ago

Fellow Searchers, I am interviewing lawyers for help with the purchase agreement and one of them asked me to pay their hourly rate just to speak with me to figure out if we could work together.

Is this common? Would you still speak to the lawyer and think of the payment as a call option and as a way for him to weed out people looking for free advice or would you walk away?

Thank you.

1 like
443 views
86 comments

searcher from Western University

From my experience, a lawyer that wants you to pay for the intro discussion is going to nickel and dime you the entire way through the deal. We've been fortunate to work with some of the best in the business (shoutout, Mario Nigro @ Stikes) on all of our deals; Mario's world-class, and has been a fantastic relationship-first partner. Find a great group that is willing to invest in the relationship (especially for the intro meeting), and hopefully you end up with a true partnership out of it.

1 month ago | like reply | 0 likes

searcher from Hofstra University

I can see it both ways. If they have no reason to believe you are serious or close to a purchase, they may not feel that time is a good investment. There could also be something about your messaging that lets them know you are speaking with several/many lawyers.

Also find some law firms that are accustomed to working with smaller companies. If you don't fit their target client model and don't believe they can get a certain number of hours they may not want to give an initial consultation. However in my experience those would often just pass and refer you to someone they know.

1 month ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Equity structures in self-funded deals

Self Funded Search - How to price the equity?

How to get brokers / sellers to understand working capital?

Free Playbook to Increase Valuation & Exit Price

How to spot FAKE EBITDA, without spending a nickel on due diligence...

Lessons learned from failed SBA financing

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.