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Why You Need A Transactional Lawyer

Posted by Patrick Ivy | Mar 08, 2021 | 0 Comments

Regardless of what type of business you operate, or whether your company is large or small, a transactional attorney will add value to your business. At Newburn Law, our experienced corporate attorneys have supported countless clients through just about every type of business transaction, from contract negotiations to business proposals. Transactional attorneys provide a wide array of services and can add value to your business by minimizing risk and providing strategic advice. Contact Newburn Law at 303-847-4987 to speak with one of our experienced business attorneys.

What Is a Transactional Attorney?

When you imagine hiring a lawyer, perhaps you imagine a trial attorney representing you in a courtroom in front of a judge or jury. A transactional attorney, however, rarely steps foot in a courtroom. Operating a business means dealing with countless laws and legal documents, and part of a transactional attorney's job is to make sure your business never has to settle a dispute in a courtroom. Transactional attorneys may provide the following services, among many others:

  • Forming legal entities, such as corporations
  • Researching the law
  • Applying for licenses and permits
  • Drafting contracts and other legal documents
  • Negotiating with potential sellers and buyers
  • Ensuring compliance with laws and regulations
  • Providing legal and governance advice
  • Designing corporate policies, such as employee handbooks or intellectual property

Why Hire a Transactional Attorney?

There are several reasons that someone may consider hiring a transactional attorney, including the following circumstances.

Starting a New Business

One of the most critical times to hire a transactional attorney is at the very outset of your business. While this is often the most exciting time for business owners, it is also an area with a lot of legal and financial risks. Whether you are starting a business from scratch or considering acquiring a new business, there are financial and legal risks involved. A transactional attorney may be able to guide you through some of the following questions:

  • What type of business entity is right for me?
  • Do we have a strong corporate governance plan?
  • What licenses and permits do I need?
  • Am I minimizing my business's tax liability with the Internal Revenue Service?
  • Do I have the appropriate insurance?
  • Does my business have the necessary policies in place?

Visiting with an experienced transactional lawyer at Newburn Law, P.C. can help make sure you understand the important questions to ask when starting a new business.

Minimizing Risks

If you are operating a small business and feel that hiring an attorney may be an unnecessary expense, make sure to consider all of the risks that come with your business. Some contracts may seem straightforward, but every legally binding document carries risk. Before entering into a new contract or taking on a new client, you should consider speaking with an experienced lawyer.

Whether a contract is a standard form or a unique agreement for a large transaction, a transactional attorney may negotiate, review, and evaluate contracts to identify any risks and develop strategies to mitigate them. Even a seasoned businessperson may not know what pitfalls to look out for when negotiating a contract, especially if is new territory for your business. At Newburn Law, our business attorneys have extensive experience negotiating business contracts and are happy to work with you to get you the most favorable contract terms possible.

Avoiding Litigation and Penalties

One of the ways transactional attorneys provide the most financial value is by minimizing the risk of litigation. Not only do transactional review contracts for potential risks in the negotiation phase, but they may continue to review contracts on an ongoing basis to ensure compliance on both sides. Failure to review and enforce contracts can cost a company a lot of money, and failure to comply with a contract can result in expensive litigation.

Transactional attorneys may also help avoid litigation from within the company as well. Employment litigation, for example, can become very expensive as well if a business does not maintain and ensure compliance with an employee handbook. By maintaining and enforcing internal policies and procedures, you may be able to protect your business from liability.  Similarly, failure to comply with laws and regulations can lead to expensive fines, fees, and penalties. A transactional attorney can help take your company through a checklist to identify these areas of risk and strategically mitigate them.

Mergers and Acquisitions

Mergers and acquisitions, no matter the value or scale of the transaction, are time-consuming, expensive, and difficult, especially without the help of an experienced transactional lawyer. The process can be overwhelming for business owners without experience, and at Newburn Law, we pride ourselves on helping business owners grow their companies while minimizing potential risks. While every circumstance is different and unique, and past success does not indicate future performance, Newburn Law has completed $20 billion in mergers, acquisitions, and divestitures of companies across many industries.

Serving as a Professional Liaison

Having an attorney by your side at the major milestones of your company, from its startup to major contract signings, provides investors, customers, and partners with a sense of confidence, especially if you are a newer company. While having an attorney may give you peace of mind as a business owner, it may also make your stakeholders more comfortable with the negotiation as well, as attorneys are seasoned negotiators bound by a professional code of ethics. In this way, your business may benefit from your lawyer's reputation, in addition to their legal knowledge and negotiation experience.

Navigating a Novel Business Venture

Something that is new for your business may not be new for your lawyer. Do not waste time and money learning how to do something from scratch, when an attorney may be able to apply their experience to your legal problem and reach a more efficient – and cost-effective – solution for your business.

Talk to a Transactional Lawyer Today

At Newburn Law, we pride ourselves on our ability to advise our clients. We are a small firm with years of corporate law experience. We understand that, as a business owner, you are focused on running your company. Allow us to step in and handle your business's legal and regulatory affairs so operating your business can stay your top priority. Call us today at 303-847-4987 to speak with one of our experienced business attorneys. Whether you are a start-up business or a long-standing corporation, we can support all of the legal aspects of your business.

About the Author

Patrick Ivy

Patrick is a native of the Texas Hill Country. He attended The University of Texas at Austin, earning his undergraduate degree in finance in 2003 and his law degree in 2007. In the winter of 2010, he relocated to Denver, Colorado. He enjoys spending time with his family and alpine skiing.

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