Scale-ups

A scale-up that has claimed before is working under a letter signed when the business was smaller. The fee basis that made sense then may not now: a percentage agreed on a modest first claim becomes a large sum on a much larger one, for work that has become routine. The terms to revisit are the cap, the fee basis at renewal, and who holds the working papers, because a growing business may change adviser and will want its file to come with it. A scale-up also has more at stake in a review, and should know what help is included and for how long.

• How are your fees calculated?, reworked on this year's claim, not last year's
• Are there minimum or exit fees?
• What happens if we end the engagement?
• What records will you need from us?, and who keeps them
• Is review support included?

Uncapped success fees carried forward from the first year. Exit fees that lock you in, including a fee that attaches to a claim filed after the engagement ends. Automatic renewal clauses that renewed while nobody was looking. A letter that was fair for a small first claim is not unfair now; it is simply out of date, and the renewal date is the moment to update it.

Capped fees and fixed fees suit a claim that has become large and predictable: on the shared example, a $35,000 fixed fee is less than a 20% fee on any claim above $175,000. Hybrid fees and retainer plus success fees keep some link to the outcome. Hourly fees can suit a repeat claim where the work is known. Put this year's claim and next year's through each with the calculator, and use the how to negotiate fees guide at renewal. Illustrative figures.