The Deal Memo: Don’t Let Lawyers Steer the Ship

Ladies and gentlemen, let’s sharpen our deal with a fencing foil—the deal memo. We all know lawyers have a knack for being called “deal killers.”

They’ve earned this reputation, and you might wonder how to keep them at bay while ensuring your deals flourish. Let’s explore the strategy that can save your deals from being torpedoed.

In the realm of business and settlement negotiations, it’s crucial to understand that the stakeholders are the heart and soul of the process. They engage in a delicate dance of negotiation, ironing out the intricate details and striving to find common ground.

Lawyers, the architects of legal documents, play an essential role, but their position is more akin to that of a backup dancer than a leading performer in this complex waltz.

One thing’s for sure; involving your legal counsel prematurely in the negotiation process can often be like tossing a heavy paperweight into a crystal-clear pool. The ripples they create can obscure the clarity of your deal, causing it to sink rather than float.

So, what’s the solution to prevent your litigation settlement deal from drowning before it even begins? That’s where the deal memo enters the scene. This one-page document is a beacon of simplicity, serving as a summary of the key points, intentions, and expectations of the deal. Whether your deal is a minor agreement or a colossal business endeavor, the authors of this one-page deal memo lay the foundation for a successful deal.

It’s essential for you or the stakeholders to be the authors of the initial terms and leaders in the creation of the deal memo. While lawyers can certainly assist in shaping the terms under consideration and offer their expertise, you should be the architect of the settlement as you are the one who best understands the nuanced intricacies of the negotiation.

Once the deal memo is agreed upon, it’s time to formalize the deal. Consider employing a transactional attorney to draft the settlement agreement instead of your litigator. Transactional attorneys have a vested interest in bringing the deal to a swift conclusion, unlike litigation-focused attorneys who may unintentionally prolong the dispute.

The beauty of the deal memo is that it allows you to remain in control of the negotiation process and ensure lawyers don’t prematurely obstruct the path to a successful settlement. Whether it’s a small-scale partnership or a grand business endeavor, the simplicity of the deal memo can be the key to keeping negotiations flowing smoothly.

In summary, the deal memo is your secret weapon in the world of deal-making. It helps you keep lawyers at bay during the delicate early stages of settlement negotiation, ensuring the parties establish a strong foundation for the deal.

Remember that even the most grandiose deals often begin with a one-page agreement, sometimes even just a hastily jotted scribble on the back of a napkin, effectively forged between the essential parties to the transaction so that even the most determined “deal-killing” attorneys can’t undermine the deal.

So take charge, lead the way, and use the deal memo as your compass to navigate the intricate world of deals and settlements. Your litigation settlement deserves a fair chance to flourish, and with the right approach, it certainly can.