In uncertain economic times, businesses face the kind of challenges they might previously have not thought possible, and a lack of understanding as to what to do next can lead many organizations down the wrong path. This is where a business needs appropriate legal strategies in place to help them overcome the confusion and anxiety that comes in times of uncertainty.
In times of economic uncertainty, businesses can face a number of different legal challenges. Examples would include distressed debt, regulatory compliance, and restructuring and insolvency.
Looked at from a legal perspective, distressed debt is an area in which multiple aspects of the law overlap, from bankruptcy law and private equity to securities law and litigation and mergers and acquisitions. As such, distressed debt is a highly complex legal area, and those choosing to invest in the distressed debt market require legal assistance that recognizes this. These legal experts should understand all relevant areas of the legal system and how they overlap, often in ways that conflict with each other.
The carrying out of business transactions is subject to regulatory compliance, and complex transactions equate to potentially complex compliance issues. Typical compliance issues that a business will face include issues relating to corporate structures; regulatory capital requirements; antitrust and competition laws, including international laws; and consumer issues. It is critical that businesses comply with the regulations. Otherwise, they can face severe financial costs down the road. At times of uncertainty, business leaders can feel their attention being pulled in all sorts of directions, so it is important to have professional and effective legal advice in place to ensure that their organizations are fully compliant.
Restructuring and Insolvency
When it comes to restructuring a business, executives face challenges in dealing with the demand of shareholders and other vested interests. Operational costs have to be examined and new organizational systems often have to be put in place. In addition, disposals or acquisitions might arise as the business is refocused to take account of the new realities. As if all of this were not enough, there are considerable legal issues associated with the restructuring or insolvency of businesses. Legal strategies are also required when it comes to dealing with issues of refinancing as well as compliance with capital and liquidity requirements.
Bob Bratt’s profile emphasizes the type of experience that organizations can benefit from in developing successful legal responses to difficult periods in the business lifecycle. As CEO of DLA Piper, Bob Bratt brings considerable experience in both public and private sectors to the table, having started his career in the Department of Justice. He is also a former managing partner for information technology company Unisys, covering the Greater Washington Metropolitan Area. DLA Piper and Bob Bratt can advise businesses facing an uncertain future on how best to resolve the issues they face, whether they are regulatory or enforcement challenges.
In uncertain economic times, businesses need all the assistance they can get, so having effective legal advice in place is critical in successfully navigating what can be choppy waters.