For any business that seeks to grow to the point that it can compete and thrive on the larger scale of national industry, there comes a point where full-time legal representation and advice become a necessity. While local mom-and-pop businesses can flourish on small scales without worrying too much about having a lawyer on call, covering your legal bases becomes exponentially more important as a business expands. This becomes especially vital once the enterprise makes it past the point of more than $10 million in revenue.
However, official in-house attorneys don’t come cheap and are often simply too expensive for middle-sized companies to consider. In the past, these legal details were often delegated to company executives in addition to their regular responsibilities.
In recent years, however, a much more efficient solution has become much more common—seeking the services of an outsourced general counsel. This article will explore this specialized legal service and the entrepreneurial benefits it offers.
Definition of Outsourced General Counsel
The exact role of an outsourced general counsel tends to vary based on circumstances. Each company will have different requirements, abilities, and shortcomings in terms of the personnel available to them, and different kinds of businesses will face potentially very different types of challenges and hurdles.
Despite the differences that can exist between one general counsel and another, at their core, they can all be characterized by a common defining trait: a firm of lawyers professionally external to a company who is hired to handle specific parts of the regular management and legal operations of said company. This work is typically done on a part-time or case-to-case basis.
Benefits of an Outsourced General Counsel
There’s a reason why hiring an outsourced general counsel (OGC) has become a much more frequent and common practice in today’s business landscape, as they offer services tailored to the needs of the business they serve. Let’s explore how exactly an OGC can be valuable to a company.
All the Important Services of an In-House Lawyer
One of the primary benefits of an OGC is that they require less commitment and are a cheaper solution to all the problems that full-time in-house attorneys can solve.
Efficient Use of Company Funds
Contracting an in-house legal counsel can be prohibitively expensive, to the point that only the most successful and largest tier of enterprises can afford to hire them. This leaves middle–size businesses in an awkward spot as their legal needs expand, even as the cost of an in-house lawyer remains well out of reach. This is where outside general counsels come in.
The main benefit of hiring an OGC is cost. Because they aren’t full-time employees, they don’t require all the usual benefits employees are entitled to, such as a full salary, health care coverage, retirement funds, etc.
Because they are contracted to handle only very specific legal responsibilities for their employers, a general counsel’s billable hours are limited to cover exactly what is necessary to complete their given tasks. This sleek, wasteless form of labor and the fact that the company doesn’t have to cover full employee benefits makes OGCs an appealing resource.
Free Up Your Team To Focus on Core Work
Without the help of outside legal counsel, most medium-sized companies will have to cover their legal needs by stretching their current workforce past their normal duties. Anyone from a CFO to a mid-level manager could find themselves handling extra paperwork outside their everyday responsibilities because no one else could handle the necessary task.
By outsourcing legal paperwork and consultation to a professional outside the standard payroll, the rest of the staff can devote their complete attention and energy to completing their everyday tasks well and carefully.
Avoid Legal Troubles Down the Road
When a business tries to take charge of its own legal affairs with the labor of non-specialists within its own company, it runs the risk of an honest mistake, leading to potentially grave consequences. While an overworked or out-of-their-depth employee can easily make a legal stumble, a professional lawyer working within their own business hours will not.
This means a good OGC offers psychological benefits with its services. It frees a CEO to focus on the big picture, allowing them to relax in confidence that their legal best interests are in good hands.
Efficiency & Optimization
We’ve already mentioned the financial efficiency of an outside general counsel who will handle legal work at a reasonable and predictable rate. Another benefit is the personal touch of an extended professional relationship.
The longer a company works with an outside counsel, the better that counsel will know their client’s business ethos, preferred business partners, preferred methods, and so on. A legal expert is good for handling problems, but an attorney who is also an expert on “you” can be an active boon for a company.
What to Look for in an Outsourced General Counsel
There are some key factors to consider when seeking a likely candidate to serve as an outsourced general counsel. The most important are:
- Relevant Experience — Ideally, a candidate has experience providing legal advice and services to a business, either as an outside resource or in-house representation. They must also be familiar with the basics of business and management.
- Effective Communication — You will want to find someone who responds to your inquiries promptly, asks questions to prepare for meetings, and doesn’t waste time with unrelated or unnecessary information. Someone who fails to keep you updated or doesn’t value your time will likely be challenging to work with.
- Fits Within Your Budget — Ensuring prospective counsel respects your budget is essential. Be sure to find out how they will manage your budget and the process for approving any services that exceed it.
- Their Demeanor — One of the most significant factors is whether or not an OGC is a good fit for a company. They need the skill set to interact with and work alongside upper management and must be able to get along with executives.
Veritas Global — A Partner You Can Rely On
All the benefits that outsourced general counsel can offer a business depend on one critical factor—that the attorney be trustworthy, professional, competent, and reliable. Fortunately, finding such a legal resource is easy. Look no further than Vertias Global.
We specialize in providing reliable legal services such as outsourced general counsel, commercial contracts, mergers and acquisitions, digital asset management, and more. Contact us today to learn how we can help take your business to the next level.
