Dear Rock,
My parents have relied on the legal guidance of a local attorney with their printing business. However, now that they’re considering selling the business, I’m worried that the lawyer won’t be able to handle the transaction. Any advice on how to proceed? ~Concerned in Connecticut
Hey Concerned,
It’s very difficult for a business owner to choose different legal counsel, especially when a family attorney has served them well. Unfortunately, when it comes to selling the business, the wrong lawyer could result in some serious damage.
Here are some tactics to help your parents assess their legal representation.
Remind your parents of the scope of this transaction. I’m going to assume this is the largest financial transaction your family has ever been a part of. Have an honest discussion about the stakes of the deal, and make sure they understand the implications if things don’t go well. It could affect their retirement and your future (if you’re intending on becoming one of the new owners).
Ask about the law firm’s experience. Just as you wouldn’t want a family doctor to perform delicate brain surgery, you also wouldn’t want a general lawyer to be responsible for the sale of a business.
Unless they’re experienced in your industry and have conducted numerous transactions, they simply won’t be prepared for the potential curveballs that could come their way. It’s nothing personal – it’s simply business.
Make sure they understand it could hurt the law firm if they get in over their head. Your parents may be sentimental and worried about hurting a lawyer’s feelings. (Wait, is that possible?) However, if the legal counsel drops the ball, something far more precious will be hurt: The firm’s reputation.
You may want to point out that a firm may agree to do the transaction out of loyalty to your parents, but in truth, they’d probably rather pass it on to a firm that specializes in selling printing businesses. No one knows better than a lawyer that it’s their job to avoid potential problems, instead of creating them.
Those are a few tips to get you started. Above all else, separate the business side from the emotional side of the transaction. That’s particularly difficult for an owner who has worked side-by-side with legal counsel, but a sale of this nature is not about the past. It’s about the future.
Rock LaManna is the President and CEO of the LaManna Alliance, a business advisory and consulting firm that helps printing owners and CEOs use their company financials to create successful strategies. He blogs regularly about family business solutions for the printing and print-related industry.
