Negotiating upfront legal costs

by a searcher from George Washington University

1 year ago

Hey everyone, I'm in the midst of selecting a lawyer for a deal and I've been noticing an interesting trend with legal fees. Most of the lawyers we talk to are trying to charge high upfront retainers and then refund us any unused part of the retainer. 

Most of the resources I've read online talk about including legal fees in the closing fees of the SBA loan and I was under the impression that we could pay most legal costs after the deal closes. 

I'm curious what other people are seeing in the market. Is it common to pay almost all legal costs upfront and then pay yourself back via the SBA closing fees OR do most people pay the lawyer with the closing fees from the SBA loan after the deal closes?

1 like
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6 comments

searcher from University of Chicago

SMB Law Group has fixed fees and seems to have great lawyers. https://www.smblaw.group/kevin-s-henderson/

3 months ago | like reply | 0 likes

intermediary from The University of Chicago - Booth School of Business

Legal fees are due to the lawyer whether the deal closes or not. Timing of payment varies. Depending on experience and relationship, there may be a) some retainer, b) some as deal progresses and c) rest at Closing. Many lawyers will trim fee if the deal does not close; they want you to come back on the next one.

1 year ago | like reply | 1 like

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