Thursday, November 23, 2006

The lawyers got paid

In the Dragons' Den/JobLoft post below, I mentioned the "huge" legal bill that the four owners of JobLoft were left with when the dragons pulled out of the deal. I brought it up because one of those owners mentioned it, and then I mentioned that bill again at the end of my post, as a lesson every entreprenur should learn: the lawyers always get paid.

To which a Toronto lawyer early this morning responded, why do I think lawyers shouldn't get paid? Painters do! He sounded quite offended.

Well, thanks to a post this afternoon by Lee Liu of JobLoft, we now have some idea what that bill amounts to:

"What they didn’t show on TV was that the legal bills for both the dragon’s side as well as our side of the deal (yes, we had to pay for both, but that’s just reality), eats away almost a quarter of the $200,000, after taxes."

As the VCs like to say, it costs as much to make a big deal as a small one.

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