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The Case for a Legal Gap Analysis

Service Agreements: Common Considerations
August 19, 2019
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Entrepreneurs are, by their very nature, more comfortable with risk than most people. It allows them to focus on growth without losing sleep over whether there is red tape around, how it affects them and how to navigate it.

But businesses that move into the scaling phase, face, all of a sudden, a new set of challenges. Though they may have survived and even thrived, these new challenges can trip them up pretty quickly and sometimes terminally, unless they take positive steps to ‘grow up’.

Internally, a business that doesn’t have its founding documents and shareholdings properly recorded; its employment relationships regulated; its IP registered; its client and supplier relationships adequately regulated, recorded and managed; its necessary compliance policies and procedures in place; and its debtors kept in line, is likely to face uncomfortable times at some stage.  Externally, a failure or reluctance to do the necessary to grow up, can put off clients, investors or lenders, or even regulators – often with unnecessary and devastating consequences.

Most growing businesses tend to only (and reluctantly) resort to legal expenditure on a reactive basis, which is often too late and ends up being a costly exercise, often involving more than just financial loss. What is not often understood is that proactively addressing the aspects referred to above can be a means through which the businesses’ commercial interests can actually be optimized at every turn. Addressing each one properly can not only have the effect of safeguarding the business, but can also have the effect of improving the value of the business and placing it in an entirely new league, effecting its bottom line directly.

In response to these observations, Caveat has designed a fixed-fee Legal Gap Analysis product providing for a full review and the preparation of a comprehensive report by an experienced Panel Member. The report arms clients with a solid blueprint of legal aspects to cover, and an indication of the appropriate sequence for work required. With this analysis and blueprint, businesses can approach growth, fund raising and even exit, on a very solid footing.

For more details of the Legal Gap Analysis and other packages, visit Services.

YVONNE WAKEFIELD

CEO