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When is the Right Time for a Company to Hire General Counsel?

When should your company think about hiring general counsel? At what point in a company’s corporate development does it realize that it needs general counsel? At what point does a company actually hire general counsel, and not just want it?

The main answer to all of these questions is that it depends less on financial metrics such as revenue and EBITDA than it does on the company’s growth and corporate strategy. Whitley LLP Attorneys at Law has provided general counsel services to well-capitalized start-up companies, as well as mature companies with up to $100 million in revenue. While both of these business types are noticeably unique from one another, they both illustrate when it is important to hire general counsel.

Good Company Control Helps Make the Decision

As a good CEO, you will know when you need general counsel. For most companies, the moment a CFO is hired is the same moment general counsel becomes a necessity. On the other hand, the development and utilization of your own corporate strategy might tell you when to get general counsel.

You might want to use outside general counsel if:

  • Your corporate strategy has become or is about to become quite active with joint ventures, acquisitions, and so forth.
  • You have just been funded in a financing round, or you must soon prepare for major financing.
  • Your company has received or will soon receive an investment from institutional investors, such as a private equity fund.
  • Institutional investors are demanding you hire general counsel for their own peace of mind.
  • You and your executive team have realized all aspects of your company are influenced by legal decision, so it will make sense to have legal knowledge institutionalized within your company.
  • Your company has suffered a “corporate tragedy” and you want to make certain nothing like it happens in the future.

As it can be seen, the vast majority of companies will have a use for general counsel, if not an eventual need. This is especially true for companies in highly-regulated industries, such as finance or energy. If you need general counsel, or if you just think it would be a good safety net to have under your company, call 888.252.8277 to connect with Whitley LLP Attorneys at Law. Our law firm has extensive experience acting as general outside counsel for corporations and businesses in a wide variety of industries. No matter the size or purpose of your company, we will prioritize your best interests in any case development.

Get an initial consultation with our lawyers by contacting us at your first opportunity.