When do I need a legal sales lawyer?
Once the decision has been made to buy or sell a business, many people choose to contact a legal sales lawyer in order to find out more information and aid them in the sales process. It’s likely that a legal sales lawyer will work as part of a team to ensure the sales transaction is carried out accurately and successfully.Whilst some people opt not to engage the services of a legal sales lawyer, this decision is often subject to regret later in the sales process or once the transaction has been completed. Although it can seem like a costly addition to the purchase or sale of your legal practice, the use of a legal sales lawyer can save vast sums of money in the long term and can even avoid costly legal fees or litigation in the future.
What will a legal sales lawyer do?
A legal sales lawyer can undertake a variety of tasks during the course of buying or selling a legal practice or business. The often liaise with brokers and other professional engaged during the sales or purchase process such as management consultants, marketing teams, surveyors, accountants etc. in order to facilitate the transaction.Depending on your requirements and the type of legal sales lawyer you use they will advise you regarding your legal position and/or offer advice regarding your options in buying or selling the firm. Alternatively, they will draft and construct contracts based on your wishes or based upon the advice you have taken from other professionals. This ensures your interests are protected throughout the sale or purchase and ensures the transactions will be valid regardless of scrutiny.
If you have decided to sell your business you may choose to engage the services of a legal sales lawyer prior to putting your firm on the market. A legal sales lawyer can advise which issues should be resolved prior to attempting to sell the business in order to make it more attractive to potential buyers (e.g. resolving any unpaid debts or issues of complaint against the business). It is likely that they can carry out these services should you require them to do so or they may be able to recommend the services of a professional with the appropriate expertise.
Indeed, the majority of legal sales lawyers will have an extensive network of professionals that may be required to assist in the sale or purchase of your firm. For example, you may require your accounts to be brought up to date or an audit to be conducted. Using professionals or companies recommended by your legal sales lawyer can limit the hassle and uncertainty of attempting to find reputable and reliable firms during a complex sales process and will allow the transaction to be processed as quickly and as easily as possible.
It may be that you don’t actually seek advice first and foremost from your legal sales lawyer. Even if this is the case, it does not negate their value or your need for a legal sales lawyer. Whether your decisions regarding the sale or purchase of a law firm are based upon your own opinions or the advice of others, you will need a legal sales lawyer in order to draft reliable contracts and documents to facilitate the sale. Although you may be satisfied with the informal agreements made between buyer and seller, these agreements need to be formalised and free from ambiguity. In addition to this, they need to fulfil various procedural requirements and be valid in a court of law should they need to be relied upon in the future. For example, part of your agreement may be that the person buying your firm agrees to employ you as a consultant for a period of at least twelve months. If this isn’t formalised correctly you may find yourself without a job and no recourse. Similarly, if you buy a firm and enter into a non-competition agreement which states the seller cannot start another firm and operate within a fifty mile radius it is essential that this contract is drafted correctly to avoid any loopholes which could severely affect the profitability and success of the firm.It is evident, therefore, that the use of a legal sales lawyer is of paramount importance when buying or selling a legal practice or business. Whilst consideration must be given to the role your legal sales lawyer will undertake throughout the process, due consideration must also be given to locating the right legal sales lawyer for the transaction in question.
Finding the right legal sales lawyer
Whilst buyers and sellers often recognise the need of a using a legal sales lawyer, people often question how to go about finding an appropriate legal sales lawyer or what they should look for when appointing a legal sales lawyer. It can be useful to obtain recommendations from trusted acquaintances but this is not always possible. If you are forced to look for a legal sales lawyer without recommendations then there are certain things you should look for when engaging the services of a legal sales lawyer.
It important that the legal sales lawyer you appoint has experience in working on business sales transactions. Not only should they be experienced in the sale and purchase of businesses but they should have notable experience of business sales and purchases within the same industry as the business you are buying or selling. For example, the purchase of a construction company may prove to be very different to the purchase of a hotel so it is advantageous to locate a legal sales lawyer who has expertise of buying and selling businesses within the appropriate sector.
Although the purchase or sale of a business can prove to be a complex transaction, the sale or purchase of a law firm can prove to be even more complicated. Valuations of law firms, for example, are notably more difficult to carry out than a standard business valuation and can add complexity to the purchase or sale of a legal practice. If you are entering into the sale or purchase of a legal practice, it is preferable to find a legal sales lawyer who has experience in this area.
It is worth noting that you may seek to use a team of legal sales lawyers rather than one person. For example, a team of legal sales lawyer may be comprised of a tax law specialist, a contract specialist a negotiator and others. Depending on the nature of the transaction and your specific requirements, the requisite members of the team may vary but should provide a valuable source of information during the course of the transaction.
If you choose to sell a firm without engaging the use of a legal sales lawyer you may unnecessarily limit or reduce the profitability of the firm resulting in you obtaining a lower price than you could have achieved for the company. Similarly, attempting to purchase a legal practice without referring to a legal sales lawyer could see you paying more for the firm than you could have otherwise done. It’s not only this initial loss that can be caused as a result of bypassing a legal sales lawyer. Contracts which are drafted incorrectly, procedural requirements which are not fulfilled and erroneous written agreements can cost a significant amount to put right or prove more costly should unnecessary loopholes be exploited by other parties. In order to ensure an accurate and successful transaction it generally recommended that individuals appoint an appropriate legal sales lawyer throughout the sale or purchase process to assist in safeguarding your position.
