R. Shawn McBride recently spoke about the risk involved when the right people are not engaged from the beginning. Here is the transcript.
Good morning everybody. R. Shawn McBride with you here live, and I’m talking about getting the right people involved at the right time. Working on a transaction right now with a client. An international client. They’ve got international council involved. I’ve been in as a US local council helping them get their company up and running. Here’s the issue: They structured a transaction with their accountants and other people before they called us. We’ve started working with the structure we were given. They told us what they wanted to do, they told us how we wanted to do it, and we started building a structure. As we start working through the issues related to it, there’s a lot of complications. US securities laws involved, US fiduciary duties, all of these types of things for an international transaction, and when we trace it back, their accountant set this structure up without talking to the lawyer so the client’s very surprised by the degree of complexity.
I think the lesson for all of us is, we need to get the right team together at the beginning. We need to make sure we’re looking at everything from every aspect. If we have just one person or one group providing input and not looking at how everything works, we’re not going to understand all the interconnections.
We’re going to understand how everything interplays. We want to get the right team together at the beginning, understand how it’s going to affect all different aspects of your business, so that you aren’t given a surprise.
Very simple lesson here; get the people involved. I know people want to save cost. Believe me. I’m a lawyer. I understand we’re expensive. I don’t want people wasting money on legal fees, but getting the right advice early is actually preventative. It saves money in the long run, so make sure you’re talking to your legal team. Make sure you’re talking to your accounting team. Make sure you’re getting the people involved sooner than later, because here the client spent a bunch of money building a structure only to find out that it has a lot of unexpected and surprise costs. I hate it for them. Unfortunately, we can’t change the law. We have to work through the issue.
Think ahead. Understand what the issues are. Get the right team from the beginning. If you need help identifying the right team, reach out to your team. Talk to them. Say, “Who else is affected by this? How do we pull it together?” Get a good group going, early.
If you have any specific request, let me know. We’ll get it in the future content. Check out my blog. Send me some notes on what you want to do in the future and what you need help on. I’ll make sure I deliver some content for you. Talk to you soon. Shawn McBride signing off.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Melissa ricquler.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.
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