Australian first: Firm introduces fixed-fee M&A

The uncertain nature of M&A matters has meant that it has been viewed as too complex for fixed pricing models. But following a successful trial, one Australian law firm has begun to offer fixed-fee M&A arrangements to its clients.

Australian first: Firm introduces fixed-fee M&A
The uncertain nature of M&A matters has meant that it has been viewed as too complex for fixed pricing models. But following a successful trial, one Australian law firm has begun to offer fixed-fee M&A arrangements to its clients.
 
According to Bespoke general manager Simon Kahil, it’s all in the planning. 
 
“Bespoke has invested in project management skills for its M&A team, to ensure that the scope of the M&A work is clearly defined and articulated before the fixed price is agreed.  We spend a lot of time and effort planning the M&A deal with our clients to provide them with a deal map – a structure and a process to guide the deal tasks that lie ahead,” he said.
 
The clients that participated in Bespoke’s fixed-price M&A trial last year incurred lower fees than they would have under a traditional time-based billing arrangement, Kahil said. The firm doesn’t charge for disbursements and the abort fee is just half the fixed price. 
 
Despite the added risk to the firm in this new approach, he believes the approach is worthwhile.
 
“There are a lot of factors in favour of fixed pricing.  The trust and confidence it gives clients in their legal team is eye-opening to clients who are used to traditional hourly rates and other forms of outdated processes,” Kahil said.
 
The move corresponds with firm’s ‘no timesheets’ approach to pricing. Kahil believes that Bespoke is the first Australian firm to offer a fixed-price M&A service and hopes that others will now follow suit.
 
“Providing a fixed fee model to clients for M&A services is already generating a great deal of market interest.  2015 is primed for a high volume of M&A activity,” he said.
 

Free newsletter

Subscribe to our FREE newsletter service and we’ll keep you up-to-date with the latest breaking news, cutting edge opinion, and expert analysis affecting both your business and the industry as whole.

Please enter your email address below and click on Sign Up for daily newsletters from Australasian Lawyer.

Recent articles & video

Mills Oakley welcomes three to partnership in major promotion round

Kingston Reid elevates two to partner

Eversheds Sutherland’s alternative legal and compliance services arm reaches the US

Trilby Misso Lawyers announces brand relaunch

Over 50% of UK chambers don’t expect to last six to 12 months, Bar Council study finds

Clayton Utz rings in new financial year with new deputy chief executive partners

Most Read Articles

JWS appoints new managing partner

Service to others is ‘a way of life’ for Maurice Blackburn principal

New managing partner celebrates first day on the job at Carroll & O'Dea Lawyers

Clayton Utz rings in new financial year with new deputy chief executive partners