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Attorneys usually are a part of the corporate finance activity that unfolds in the capital markets. Companies typically engage several third-party service providers, ranging from lawyers to investment bankers and consultants. The use of corporate finance for lawyers includes constructing deals that adhere to the financial regulations in a region. This role also extends to providing advice that can save a company time, money and embarrassment.
The most experienced attorneys might have participated in deals in both the debt and equity capital markets. Certain law offices are dedicated entirely to corporate finance or have groups that focus exclusively on corporate finance. As part of this corporate finance for lawyers, many types of clients can be serviced. Clients could be any organization — public or private — in addition to government agencies and investment firms, such as private equity shops, which are active in raising capital.
Chief among the uses for lawyers in corporate finance is taking advantage of their ability to spot potential problems in a financial transaction and offer answers to those issues. A breadth of experience on various deals in addition to knowledge about law and regulation might contribute to a lawyer's ability to serve this purpose. Attorneys are often called upon to work alongside corporate executives and investment bankers and might be involved with the composition of different deals. Some of the obvious uses in corporate finance for lawyers might be in cross-border deals, where there are different sets of regulations to consider. Attorneys are also needed in some of the most straightforward, domestic transactions that occur in the markets.
Information is exposed when a company is doing a major financial transaction, such as an initial public offering (IPO) when shares are traded in the public markets for the first time. This is a type of corporate finance in which the use of lawyers is needed. The amount of information that can be made public initially is limited, and attorneys are relied upon to protect a company's position. This can be especially useful when there are media inquiries and other inquiries directed at a company that is planning a major launch in which the use of corporate finance for lawyers is paramount.
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