Whether you are starting a new business or expanding an existing one, you will need the services of a corporate and commercial lawyer at some point. Here are four times when you should consider hiring one:
Mergers and Acquisitions
If you are looking to expand your business by acquiring another company, you will need a corporate and commercial lawyer to help with the negotiation and purchase of the business. They can also help with any due diligence that needs to be done on the target company. For example, a corporate and commercial lawyer can help you:
- Review the target company’s financial statements
- Negotiate the purchase price
- Draft the share purchase agreement
One of the main problems that arises with mergers and acquisitions is the issue of warranties and indemnities. Warranties are promises made by the seller about the state of the business, while indemnities are payments made to cover any losses suffered as a result of those warranties not being met. A corporate and commercial lawyer can help you negotiate these terms to protect your interests by:
- Reviewing the warranties and indemnities proposed by the other party
- Negotiating more favorable terms
- Drafting bespoke warranties and indemnities to cover specific risks
Initial Public Offerings (IPOs)
An IPO is when a company sells shares to the public for the first time. If a company decides to go public, they will need to comply with a lot of regulations. Since there are many moving parts, you will need to hire a corporate and commercial lawyer to lend their expertise throughout the process. There are numerous reasons for this:
- To ensure that the company is in compliance with all the securities regulations
- To help prepare the disclosure documents
- To assist with the listing process on a stock exchange
- Filing the necessary paperwork with the Securities and Exchange Commission (SEC)
- Advising on the best type of legal structure for your business
When it comes to going public, there are a lot of moving parts and a corporate and commercial lawyer can help make sure the process goes smoothly.
Joint Ventures
Business planning is already tough, and if you bring in another entity, things can get confusing very quickly. A joint venture is when two or more companies come together to form a new business. This can be a complicated process, so it’s important to have a corporate and commercial lawyer on hand to help with the negotiation and drafting of the joint venture agreement.
They can also help determine what type of legal entity the new business should be, as well as assist with any regulatory filings that need to be made. It’s important to have a lawyer who is familiar with the area in which the venture will be taking place, especially since different regions of the country (and the world) have different laws governing joint ventures.
For example, a company entering a joint venture with a Mississauga, ON based company will need a corporate and commercial lawyer Mississauga who is in tune with the local laws and regulations. If you plan to split ownership of office space or other forms of property, a corporate and commercial lawyer can make sure that agreements are fair.
Financing
Whether you are looking for venture capital, a bank loan, or another type of financing, you will need to put together a pitch deck and business plan. By reviewing financial projections and providing feedback on the overall structure of the deal, a corporate and commercial lawyer can help make sure your business is in good shape to attract financing.
They can also help negotiate the terms of the financing agreement, as well as any other agreements that need to be in place before the money changes hands. For example, a venture capitalist may want to invest in your company, but they may also have a certain percentage of equity in your company. Without a legal professional, it can be easy to get taken advantage of in these types of situations.
Endnote
There are many different times when you will need to hire a corporate and commercial lawyer. Whether you are looking to finance your company, go public, or enter into a joint venture, they can help protect your interests and ensure that the process goes smoothly.
While you may be tempted to try to save money by handling these things yourself, it’s important to remember that a corporate and commercial lawyer has the experience and expertise to get the job done right.
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