Fixed-fee M&A to cut the cost of buying and selling companies

Lawyers say it’s a myth that M&A transactions cannot be completed on a fixed price No deal, half fee
The cost of buying and selling businesses is set to fall with the launch of a fixed-price M&A legal service, which lawyers say can cut legal fees by up to 30%.

It is the first joint product brought to market by Riverview Law, the fixed-priced legal services business, and DMH Stallard, the innovative South-East commercial law firm, since announcing their strategic alliance in May this year.

Riverview Law’s COO, Adam Shutkever, says: “It is a myth long-peddled by law firms that most legal work can’t be carried out on a fixed-fee basis. Any law firm could make this proposition work with proper planning and resourcing.”

Deals already carried out by the pair in the service’s pilot phase have resulted in clients paying on average 30% less than they would have done on a typical hourly rate charge.

As no two deals are the same, the fixed-priced M&A offering starts with a free consultation to assess the customer’s exact needs. Within 48 hours, a no-obligation fixed-fee proposal is presented. The agreed deal is delivered by a team selected from over 150 corporate lawyers across the two organisations, and put together according to the deal’s specific requirements. If the deal fails to complete through no fault of the client, then only half the fee is charged.

The team works alongside the client’s other professional advisers to offer any or all of the following under the fixed fee:

• Negotiating preliminary issues such as heads of terms and confidentiality agreements;
• Full-scale due-diligence activities;
• Drafting and negotiating all transactional documents;
• Facilitating online ‘data room’ services;
• Managing commercial issues such as material contracts, IP and change of control;
• Dealing with any bank or financing facilities;
• Providing structuring/post-deal advice and review;
• Company law advice post acquisition, including shareholders’ agreements.

The firms are also able seamlessly to combine their expertise in other areas such as property or
employment to deal with any contiguous requirements.

A fixed fee is available regardless of the size of deal. Riverview Law and DMH Stallard guarantee no change to the fee unless the parameters of the deal, as outlined at the initial meeting, shift materially.

Adam Shutkever says: “Fixed fees are at the core of the Riverview Law ethos. We have looked at what businesses need during the M&A process and, as well as quality legal advice, that is certainty of price and knowing that the ancillary costs of the transaction will not spiral out of control.

“Our new M&A fixed-cost package is a further extension of our aim to change the way that businesses use, measure and buy legal services and is a natural progression of our relationship with DMH Stallard.”

Jonathan Grant, head of corporate at DMH Stallard, says: “The offer combines DMH Stallard’s long M&A heritage with the customer-centric approach pioneered by Riverview Law. It really does give clients an expert and timely legal solution at a far more realistic price. We’ve already carried out a number of fixed-priced M&A transactions for clients and so we have proven that it can be done.”

For further details please contact Riverview Law on 0844 257 6000 or email [email protected]