Context: Just heading under LOI and into my first exclusive diligence period in a self-funded search.
I hear some of the cost estimates and budget recommendations on some of the podcasts about what to expect as well in talking with friends that have done this several times and I'm having a tough time reconciling the difference as it is many orders of magnitude difference.
I learned early in my career that accountants and lawyers are worth paying up for good advice, however I of course don't want to incur unnecessary transaction costs, especially when there's a decent probability of the deal not completing and I'm paying for it out of my acquisition capital. I'll share some average ranges that I'm hearing and would really appreciate any thoughts and experience from folks that have tried both, and/or had a strong positive or negative experience with one and would do it differently a second time.
Small firm: $10-20k - LOI review, PSA design and general legal diligence - review of key supplier and customer contracts etc.
Large firm: $75k - 100k - I guess everything, presumably with more horsepower and associates reviewing every detail
Thanks in advance!
Legal Diligence - big vs. small firms - Looking for opinions and experience
by a searcher from University of Victoria
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