Hello, friends! If you are a business owner considering (or even in the midst of) a business transaction, you might start licking your chops if the person on other side of the transaction does not have an attorney. Won’t you and your attorney be able to negotiate better terms and a more favorable deal for you? Perhaps… but let me give you four reasons why you should be glad when the other side hires a good business attorney:

1. It shows that the other side is invested in the deal.

When the folks on the other side bring in a good attorney, it shows that they are serious – serious enough to spend their hard-earned money on an attorney to guide them through the process of investigating, negotiating, and closing the deal. And let’s be blunt – the lack of an attorney on the other side suggests that they are cutting corners and making you eat all the contract drafting costs.

2. Due diligence is much easier.

The due diligence process is much easier with experienced attorneys on both sides. Business transactions of all sorts involve some type or degree of investigation by one or both sides to understand the benefits and potential risks of the deal. Regardless of the scope of the investigations, having an experienced attorney on both sides will streamline the exchange of information and documents, as well as the resolution of any conflicts or questions that arise.

3. It helps identify and avoid otherwise unforeseen problems.

A good attorney on the other side will help identify and resolve problems early in the process. For example, if adverse tax, licensing, or other issues could cause the other party to pull the plug on the deal, you definitely want to be aware of those sooner rather than later. Doing so will allow you to either figure out a resolution or cut your losses and move on.

4. Negotiation and finalizing your documents is easier, cheaper, and faster.

Although there could be strategic drafting benefits if your attorney controls all changes to the documents, even complex deals are easier and cheaper when both parties share the burdens of negotiating, revising, and finalizing the documents. When the other side has no attorney, the deal can actually take longer to close than necessary. And as mentioned above, you will end up bearing all the costs of revising and finalizing the contracts along the way.

If you are looking at some type of business transaction, do not despair when the other side hires an attorney to represent them. Instead, be glad the other side has an attorney to help walk them through the entire process of your deal from beginning to end.

All information and other content on this site is for informational purposes only. It is not legal advice. You should not rely in any manner upon the information on this site or otherwise construe it as a legal opinion or legal advice. Consult with your lawyer regarding your particular issues and circumstances.

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