[jon_dahl]

Not that I'm an expert on this sort of thing, but I'll bite.

* Get a good lawyer if you don't have one already. If they're a Silicon Valley company, consider getting a lawyer at a top SV firm (Orrick, Gunderson, Wilson-Sonsini, etc.) and asking them to defer fees until the acquisition goes through. That way, you're not out anything if things fall through. (Ask for a referral to an attorney on HN and I'm sure you'll get some good connections. I could refer you to a few.)

* If it's primarily a "hiring bonus" acquisition, it might be cheap and easy to do. In other words, if they mostly want you and your expertise, not (just) your product, they're less likely to screw you.

* Even if you really want the deal to go through, don't stop everything and wait for that to happen. Keep moving the business forward as if nothing will happen.

[_delirium]

Are top SV law firms' fees in the price range where they'd make sense for low-six-figures acquisition? Not a rhetorical question; I have no idea if you can expect to pay closer to $10k or closer to $100k for their services.

[jon_dahl]

I think they usually know how to scale their fees. Equity funding can easily run $50K+ in legal fees, but we paid $4K (count 'em) for a medium-sized angel round, using one of the top lawyers in the valley. We were able to do this by keeping the round structure simple. My guess is they could do the same for a small acquisition.

[gyardley]

They bill by the hour. Rates are hundreds of dollars an hour depending on the lawyer - the paralegal is cheaper than a partner. In my opinion, for low six figures, the deal would have to be ridiculously simple for the fees to make sense for both you and them.