The Role of a Commercial Lawyer in Building a Valuable and Saleable Business

Engaging a skilled commercial lawyer is invaluable when preparing your business to be profitable, scalable, valuable, and ultimately saleable. Acting as an in-house legal advisor when needed, a seasoned commercial lawyer can offer critical support across all areas of the business. They can help you set things up right from the beginning, and help mitigate risk.

1. Structuring and Governance

• Legal Entity Structure: A commercial lawyer ensures your business is set up with the most effective entity structure (e.g., Pty Ltd, LLC, Corporation, Limited Company), critical for managing liabilities, optimizing tax efficiency, and supporting ownership transitions.
• Governance and Compliance: Companies must meet regulatory standards and governance obligations. Your lawyer will set up robust governance practices, including shareholder agreements and board structures, to ensure compliance and reduce potential risks while aligning with corporate standards.

2. Risk Management and Minimization

• Risk Audits and Legal Compliance: A commercial lawyer conducts thorough risk audits to identify any contractual, operational, employment, or compliance risks and proactively address them.
• Contract Management: They can ensure all contracts—with customers, suppliers, and partners—are legally binding and reduce exposure to disputes, safeguarding your business from liabilities.
• Intellectual Property Protection: Ensuring trademarks, copyrights, and patents are protected across regions is crucial. A skilled lawyer will secure your intellectual assets and prevent infringement, strengthening your brand’s resilience as the business grows.

3. Sales, Marketing, and Data Protection

• Advertising Compliance and Consumer Protection: A commercial lawyer ensures your sales and marketing strategies align with local advertising and consumer protection laws, which helps mitigate risk and enhances brand credibility. Sometimes making promises carries risk.
• Data Privacy: Lawyers also help you stay compliant with data privacy laws, especially as your business scales and collects more customer data. They ensure that your business is protected from potential penalties and reputational damage.

4. Employment and HR Legal Framework

• Employment Contracts and Compliance: Employment laws vary widely. A commercial lawyer ensures your contracts contain essential clauses like non-compete and confidentiality agreements, protecting the business from potential labor disputes.
• Dispute Resolution: With expertise in employment law, a lawyer can also assist in preventing and resolving employee disputes or terminations in a compliant manner, helping you avoid costly legal battles.

5. Strategic Growth and Scaling

• Mergers, Acquisitions, and Strategic Partnerships: As your business grows, your lawyer assists with due diligence for mergers or acquisitions, covering all legal aspects of expanding into new markets or forming partnerships.
• Licensing and Franchise Agreements: For businesses that scale through licensing or franchising, a commercial lawyer drafts and negotiates agreements that protect your interests while supporting scalable growth.

6. Exit Readiness and Due Diligence

• Preparing for Due Diligence: As you prepare for a sale, a commercial lawyer ensures all documents and legal records are compliant, organized, and clear for potential buyers. They conduct a due diligence “pre-check,” positioning your business advantageously for acquisition or sale.
• Sale Agreements and Post-Sale Protection: A lawyer drafts sale agreements that protect you from potential future liabilities, ensuring your exit is as smooth and beneficial as possible.

7. In-House Counsel When Needed

• Having a commercial lawyer who can act as an in-house counsel offers invaluable flexibility, enabling the business to address legal issues as they arise. This real-time legal support allows the business to handle contract reviews, disputes, and compliance effectively, ensuring operational continuity.

In short, a commercial lawyer becomes a critical partner in creating a legally sound, risk-minimized, and scalable business. Their expertise allows you to focus on growth, confident that your business is prepared for a successful sale with strong legal foundations.