Provided by: Jennifer Kirschenbaum, Esq.
April 13, 2023
Question:
Jennifer,
I’m selling my practice. Do you offer a flat rate for sales?
Thanks,
Dr. M
Answer:
I do not recommend pressing for a flat rate for a one-off sale. Why? Incentives are absolutely not aligned. On a flat rate where there is no need for future work, counsel is incentivized to get the deal done as efficiently as possible to receive the same negotiated benefit. A flat fee makes sense when setting an ongoing legal budget. At K&K as outsourced general counsel to many of our clients, we’ve been moving to flat fee models. It just makes sense. You know and we know what the regular charge is, just like how you budget for your employees and vendors. But, that only makes sense when there is a somewhat regular flow of predictable work, so neither side has feelings of being taken advantage of. Similarly with our portfolio acquisition work, in approaching a regular deal flow with a customizable form starting position, or for our portfolio real estate work, with regular flow, we can set flat rates, and more economical solutions than larger firms paying for empty office space can offer.
For a single practice sale, I recommend working with counsel who “gets” your objectives and is able to navigate you through your transition with experience. In the end, while we don’t recommend a flat rate for this transition process, we do look to stay within our estimates, and if there is a deviation, since you are the driving force in a sale process, you would be in the loop on why.
Always reach out with any billing questions or concerns. We work extremely hard to produce itemized and understandable bills in a timely manner - end of each month you will see all activity. Always call or email with questions. I know for a fact we are one of the few firms in the healthcare space effectuating an organized and accountable billing process (being subject to large firm billing practices on a regular basis in our GC roles) (thank you, Amy LaVeglia!).
