Corporate finance law is a part of corporate law and every business that requires funding, needs a corporate financial lawyer for that matter. Financial lawyers have experience with investment banking or at least they cooperate with investment bankers to close the deal. Whether you want to acquire or merge with another company, issue securities, go public, raise funds, sell a business, you need legal help from a financial lawyer.
A financial lawyer can guide you through the procedures and compliance, drafting documents, reviewing agreements and generally negotiating on your behalf with other parties. Your financial lawyer is your mediator too because he can help you make the best decisions for your firm.
Corporate Finance Law Explained
These are just some of the main areas of corporate finance law:
- Multi-jurisdictional/Cross-Border Financing
- Venture capital, Mezzanine Financing
- Corporate and commercial banking
Securities lawyer can help you with these areas of business funding:
Bought deals – a security offering that includes underwriters who have accepted the agreement to purchase securities of an issuer. This implies securities that will be offered in a firm commitment offering.
Compliance – issuing of shares has to be compliant with federal and provincial laws.
Initial public offerings – offering stocks of private company to the public for the first time, with an aim to raise investment capital.
Multi-jurisdictional offerings – when your company in Canada wants to have cross-border public offerings of securities with the USA. This kind of agreement makes the whole process easier.
Private placements – securities offering without a prospectus document which contains all the details securities you offer as also your company details.
Stock exchange listings – a list of institutions, organisations or associations that trade stocks.
Acquisition finance – using different techniques such as debt, equity and hybrid financing to acquire capital to purchase another business or to merge with another company.
Asset-based lending – when you want to get a loan for your business, that loan can be granted on the value of your assets. The assets are pledged, which means the borrower gets your assets if you don’t pay the loan.
Commercial lending – It is a bank loan, or loan from any other financial institution that companies get to cover operational and other major expenses.
Leveraged acquisition finance – The provision of bank loans and high yield bonds issues. Businesses use them to fund companies acquisitions by an internal or external management team, or a third party (an acquisition).
Receivables finance – A type of asset-financing when a company uses its receivables such as outstanding invoices or customers’ money to receive funding.
Streams and royalty transactions – A royalty is generally a payment made by one party to another over a period of time. That other party owns a particular asset.
Structured finance – this part of financial law deals with risk management and leverage management.
When to hire a financial lawyer?
Now that you have gathered some basic knowledge about financial law, you may want to try one of these funding solutions. Whatever need your business has, you should seek professional help from a financial lawyer, to consult about drafting security agreements, securing the best loan, protecting personal property or lending it to your own business.
If you need to negotiate terms with other company, our financial lawyer can represent you and get you the best possible deal.
Here is how the process normally goes:
- Our financial lawyer meets with you to discuss your business needs and the terms of the deal.
- Then he drafts documents that follow the terms of the deal as agreed in the initial meeting with you.
- Our lawyer sends the documents to the opposing party and their lawyers for review.
- He spends time with the lawyers of your opposing party and negotiate the terms of the deal.
- Finally, our lawyer revises documents, prepares closing documents, and handles the closing of the deal.
Our law firm offers free legal consultation from experienced financial lawyers. He can guide you through the whole process and explain in details what strategy is the best to achieve your business goals.
Call our Toronto office and schedule a meeting today.