We understand your need to avoid billing surprises for services provided by GrowthLaw. We’ll work with you from the beginning to make certain your legal project budgets are understandable, affordable and, based on the value our legal services should help contribute to your bottom line, worth the cost.
A few examples of how we help you figure out what our work will cost:
Scoping Your Project
Unless you come to us with a legal emergency, starting with a short initial assignment can give you a high comfort level as you establish a relationship with GrowthLaw. Such a limited assignment might involve determining what needs to be done to help complete a deal, or managing some upcoming litigation. It could involve advice on a less time-sensitive legal or business problem, such as developing an employee handbook. Such initial assignments typically cost less than $2,000.
Monthly or Project Retainers
The standard GrowthLaw rate ($350 per hour plus expenses) will apply for companies not already in an existing client relationship with the firm. You can be billed at $300 per hour if you agree to retain at least four hours GrowthLaw’s services per month for at least six months. Another way to get retainer-level rates is to hire GrowthLaw for a business legal project that guarantees to take 30 hours or more to complete. Retainer fees guarantee that Bill Price will be available for any legal problems or questions that arise, or he can spend that time reviewing your operations and documentation.
By the way, the GrowthLaw standard rate is around 40% lower than rates normally charged by large city-center law firms – and you get an experienced senior business lawyer, Bill Price, for less than many firms charge for their less-experienced associates.
We bill for our legal services on a monthly basis, so clients can stay in touch with the time and costs that have been incurred – and can control or change project and services scope as needed.
Business purchases usually run about 1% of transaction cost for lawyer fees, with another 1% if the deal requires financing or securities law compliance work. Business sales can also be done for a fixed price, letting you accurately calculate your net proceeds.
Fixed or Contingent Costs
Whenever possible, we suggest use of standard legal document sets for business. In most situations, this allows you to pay a lower fixed fee to get your data into the proper forms and filed with the right agencies.
If project affordability is an issue in more complex matters, we can arrange work with you on a contingent basis. An example of this type of arrangement would be a business sale or purchase, with fees paid when financing is received. Contingent fees typically would be based on higher hourly rates (reflecting what is in essence a loan of services to you) or a percentage of the business deal.
Adding Value is a big part of what we do
An important GrowthLaw goal is to work with clients in a manner that allows our legal support to add value to their organizations. How? Three examples of ways GrowthLaw has saved or found money for other companies:
- Assignment: A trade publisher creating a best-in-industry knowledge management system needed help negotiating computer systems development contracts.
- GrowthLaw value added: Contract negotiations assured that our client held on to the intellectual property produced in its systems software purchase, avoided use of the new knowledge by competitors and included terms that would make the consultant accountable for results, not just hours of work billed.
- Assignment: A Tokyo-based manufacturer negotiating a $77 million acquisition of metals processing companies needed help with due diligence before closing, plus share purchase contract negotiations, guidance at closing, post-closing tax and accounting warranty, international subordinate and U.S. company consolidations, and related legal work for the acquired entities.
- GrowthLaw value added: GrowthLaw kept track of compliance with complex merger and state corporate rules, important for client peace of mind. The fees charged make up only a small fraction of the returns to the client, in profits, through accounting adjustments obtained for the client, and by probable tax and environmental costs identified and taken on by others.
- Assignment: A biodiesel plant and a short track drag strip asked us to prepare and review private placement memoranda to provide comprehensive pre-investment information for investors. Neither transaction ended up as a securities-based issue. Rather than the anticipated private offering, the first transaction turned into a $1.5 million sale of the entire project to an investment group. Difficult real estate markets forced cancellation of the second proposed transaction.
- GrowthLaw valued added: GrowthLaw pointed out that companies selling securities must disclose all information pertinent to any investment before any money changes hands or face charges of securities fraud. That business and legal knowledge helped the clients make a significant profit in the deal that went through, and the prearranged fee arrangements saved them costs when the second failed.