Client:International Software Company
– Client sought experienced legal counsel to close a $20 million debt facility at a reasonable price.
– Client was concerned about legal costs, particularly since it would be responsible for all financing expenses of both sides. Client particularly wanted to avoid the high cost and inefficient staffing approach they observed in their previous experience with the Big Law firms.
– Cognition assembled a lean team of two lawyers and one summer student. Each lawyer brought to the table her own specialty and focus (debt financing and public securities), eliminating team redundancies.
– Cognition unbundled the transaction’s legal services and outsourced discrete portions of highly specialized areas such as tax to external counsel.
– Enhanced client service and project transparency.
– Lean and effective project management and delivery.
– Cost savings: Client (as the issuer) legal fees were $200,000 less than the lender legal fees (Cognition legal fees of $55,000 versus Big Law firm legal fees of $250,000) even though much of the drafting was done by Cognition’s lawyers. Disparity was so great that the Client approached the lender to question its legal costs.