Businesses have value, raise capital, pursue acquisitions, restructure their operations and lawyers are instrumental in making this happen. It is therefore essential that lawyers understand the financial rationale behind their clients’ decisions.
Financing transactions is a critical element in the success of any business. Access to financing options is essential for a business to be able to take advantage of growth opportunities. Of course, the best financing option will depend on the nature of the business, the nature of the transaction, the company’s current financial situation and other factors.
Some financing options carry associated costs or risks that company leadership must understand in order to make good decisions. A corporate lawyer needs to understand the financing of business transactions and the benefits and drawbacks of the various options.
One of the ways in which a business seeks to grow is through merging with or acquiring an existing business with the intention that the resulting combination of products, people and pipelines will take the business to a new level.