What costs will incur if I hire a lawyer to create a company purchase agreement?
July 3, 2023 | 60,00 EUR | answered by Ralf Hausdorf
Dear lawyer,
I am currently facing the decision to purchase a company and would like to engage a lawyer to draft the company purchase agreement. However, I am unsure about the potential costs and how they will be billed.
Background information:
I have identified a company that I would like to purchase. The seller and I have agreed on the basic terms and now wish to create a legally sound contract to finalize the purchase process.
Current situation:
I do not have a clear idea of the costs for legal advice and drafting the company purchase agreement. I would like to have clarity in advance to adjust my financial planning accordingly.
Concerns:
I am concerned that the costs of engaging a lawyer for contract drafting could be too high and exceed my budget.
Question:
Could you please explain in detail what costs are involved if I engage you to draft a company purchase agreement? How is billing done and are there ways to optimize costs? I would greatly appreciate a transparent breakdown of the fees involved to make an informed decision.
Thank you in advance for your assistance.
Sincerely,
Thomas Hohenberg
Dear Mr. Hohenberg,
Thank you for your inquiry regarding the costs for the preparation of a business purchase agreement. As an experienced attorney in fee law, I can provide you with more detailed information on this matter.
Generally, when engaging an attorney for the preparation of a business purchase agreement, there are various costs involved. These typically consist of attorney fees and expenses. Attorney fees are governed by the Lawyers' Fees Act (RVG) and are calculated based on a certain fee rate. The exact amount of the fees depends on various factors, such as the value in dispute or the scope of the attorney's activities.
For the preparation of a business purchase agreement, a fee agreement is usually made between you and the attorney. This can be based on an hourly rate, a flat fee, or a success fee. With hourly billing, the actual hours worked by the attorney are billed. With a flat fee, a fixed sum is agreed upon for the entire service. With a success fee, the fee is based on the attorney's success, such as the successful conclusion of the business purchase agreement.
To optimize costs, you can discuss various options with the attorney. Transparent and clear communication about costs, as well as a detailed breakdown of the fees, can help avoid unexpected costs. Additionally, you can negotiate a cost cap or consider alternative fee models.
Finally, I recommend that you inquire about the exact costs and establish an individual fee agreement during an initial consultation with the attorney. This will give you clarity on the fees involved and allow you to adjust your financial planning accordingly.
I hope this information has been helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Ralf Hausdorf
Attorney specializing in fee law
