What Is a Transactional Lawyer?
A transactional lawyer is also known as a business lawyer, and they focus on helping businesses with all different types of transactions, like mergers, sales, and acquisitions. This means they can help with contracts or agreements when it comes to large business transactions. They usually specialize in corporate finance. Transactional lawyers can also help with estate planning, drafting wills, power of attorney, negotiating leases, and filing tax documents on their client's behalf.
What Does a Transactional Lawyer Do?
A transactional lawyer will oversee contracts and agreements concerning financial exchanges. They verify all documentation, negotiate on behalf of the company, and offer legal counsel regarding intellectual property, real estate transactions, licensing and trademarks, and mergers and acquisitions. A transactional lawyer can also offer personal estate planning services. This means they can write up wills, draw up paperwork to sign over power of attorney, and create employee agreements.
A transactional lawyer should also offer their clients legal counsel to help them develop contracts and agreements that suit their needs and provide them with adequate protection.
When Do You Need a Transactional Lawyer?
If you are looking into estate planning, hiring a transactional lawyer is important. You will want your will to be legally certified. You may also want to consider hiring a transactional lawyer if your company is about to complete a large business transaction. A transactional attorney can verify contracts and agreements before you follow through with the purchase or sale.
However, even if you have no large transactions in the works, it's still a good idea to hire a transactional lawyer. They can assist you with any legal documentation you have and help you get ready for big transactions in the future. If you want to avoid legal fees in litigation down the line, hire a transactional attorney to prevent such a situation from occurring.
How a Transactional Lawyer Can Help You
There are many different situations in which a transactional lawyer can help. They specialize in regulatory research, which is usually referred to as due diligence. A transactional lawyer will do the legal research necessary to verify all contracts, agreements, or transactions to ensure everything is in their client's best interest. Here are some examples of what a transactional lawyer does for a business:
- Verifies contracts
- Draws up contracts and agreements
- Drafts employee contracts
- Offers legal counsel on general compliance matters
- Completes due diligence (legal research) on behalf of the client
- Designs policies
- Drafts up protection of intellectual property
- Offers legal advice on matters of employment, fiscal responsibilities, and transactions
The Benefits of Hiring a Transactional Lawyer
Hiring a transactional lawyer can have many benefits for you and your growing business, including:
- Your will or contract will have more weight in court if it is drafted and signed by a transactional lawyer.
- You will discover legal issues with your business transactions before completing the exchange.
- A good transactional attorney can help you with income tax filings.
- They can save you money by preventing you from getting pulled into litigation.
- They can offer estate planning advice.
What to Ask a Transactional Lawyer Before You Hire Them
Hiring the right attorney can make all the difference in your company's success. It is worth taking your time and evaluating your options as best as possible before making your decision. Here are some common questions to consider asking potential lawyers you meet with:
- How many years of experience do you have in this type of business?
- How many other clients do you have that are similar to me in terms of business?
- What can you offer me over other transactional attorneys?
- What types of transactions do you usually work with?
Here's an article with some additional questions you can ask transactional lawyers to help you decide which to hire.
What to Look for in a Transactional Lawyer
You know how to interview an attorney, but do you know what to look for in one? Here are some qualities to look for to ensure the lawyer you choose is right for your business:
- They understand your business: Talk to your potential attorney about your company and ask relevant questions to see if they have a complete understanding of how things operate in your business, not just in your industry. When it comes to negotiations, they need to be well-informed to handle them properly. Give them an example, and see how they respond to make sure they are right for your individual business.
- They ask for your opinion: A good transactional attorney doesn't just need to know the law. They need to understand your needs and do their best to make sure you're happy. They must care about what you're interested in, not what they're interested in. Look for an attorney who asks for your opinion and presents you with different options to choose from.
- They are flexible: While agreements do need to be ironclad, you also need a lawyer who has some degree of flexibility. Things change over time, and your lawyer needs to be committed to serving you and rolling with the punches, not just securing the deal they originally suggested.
What Is the Difference Between a Transactional Lawyer and a Litigation Lawyer?
Though both a transactional lawyer and a litigation lawyer can be beneficial to a business, they have varying areas of expertise. As mentioned above, a transactional lawyer's main purpose is to provide legal counsel on business transactions, contracts, and agreements.
In comparison, a litigation lawyer specializes in settling active litigations in civil court. The best approach is to hire a transactional lawyer to avoid any future litigation. However, issues may arise nonetheless. In the event you are brought to civil court, you should consider consulting with a litigation attorney to prepare the best defense and resolve your case in a timely manner.
Learn more about the difference between these types of law in this article .
You and Your Transactional Lawyer Are a Team
Although your transactional attorney has the legal knowledge you may not have, they are still only part of your team. You can and should feel free to have open discussions with your attorney, weigh your options together, and look for a solution that works for you. A good attorney will always be open to working together with you and ensuring all parties' common goals are met. If your lawyer makes you feel as though you cannot comment on proceedings, you may want to consider hiring a different one.
If your lawyer advises against something that you want to do, they should be able to explain why they don't think you should do it. Flexibility is required on both sides, but the real secret to a good attorney-client relationship is open communication.
Do Your Homework
A transactional attorney can help save you money and keep your company from falling victim to unwanted litigation, so it's essential to do your homework to find a suitable lawyer for your needs. Before hiring a lawyer, make sure they are experienced in your industry and have the knowledge and expertise to counsel you properly. Ask all necessary questions beforehand to ensure you hire the best lawyer for your business.
The right transactional lawyer can help you manage your business more efficiently and propel you on the road to success. Click here to find a transactional attorney in your area.
