What are Commercial Law Firms?
Many people are not familiar with what commercial law firms do or how they can help advise their business in dealing with the law. Commercial law firms are a type of law firm that specializes in providing legal services to small- and medium-sized businesses. The world of commercial law firms is complex, with hundreds of thousands of commercial firms currently operational.
Commercial law firms offer many different legal services to businesses. Commercial law firms have the capabilities to virtually address any legal need or at least point a business in the right direction. As your business expands and grows, the complexity of commercial law does as well. Most commercial law firms employ hundreds of lawyers for disputes, contracts, human resources, startups, mergers and acquisitions, financing, and even complex intellectual property issues.
The costs for commercial law vary greatly. As always, the more money your business has and the more assets you possess, the more control you can exert on the rates charged. Generally, larger sized firms are going to be more expensive than smaller firms. However, this is not always the case. Some small commercial law firms have high rates in order to pay their attorneys higher salaries. Other commercial firms , particularly like Gardner Law Group, PC, offer affordable rates because the attorneys work from home and online.
In addition to working with existing businesses, commercial law firms offer advice to new startups as well. Any business that interacts with other businesses is subject to commercial law. Every type of deal, bargain or sale amongst separate parties usually requires some form of contractual agreement. For startups, this could be a huge benefit as applying for financing or seeking potential investors usually requires several contracts to be signed. Many startups also need advice on how to form their business as well.
Commercial law is complex in the United States due to an uneven regulatory framework, where some deals don’t even require a contract at all. Consulting with a commercial lawyer to go over all agreements to not only see if they align with state law, but also with federal law in case you happen to compete with a large business outside of the state.
A major advantage of using commercial law firms is that you will usually have a dedicated attorney to handling your case. If you’re retaining a commercial law firm for basic needs, then you will get to know an attorney quite well.
Services a Commercial Law Firm Provides
The services offered by commercial law firms can vary depending on the size and specialty of the firm. However, there are some core services that most commercial law firms provide to their clients. These include:
Contract Drafting and Negotiation
Drafting contracts is one of the primary roles of a commercial law firm. Contracts may be as simple as sales agreements or as complex as merger and acquisition agreements. Regardless of the type of contract, the tone and structure must be commercially minded, yet reflective legal industry standard conventions. In an increasingly competitive business world, commercial law firms are routinely called upon to draft and negotiate contracts across various jurisdictions. A good commercial law firm will have lawyers that are learnt in the laws of other jurisdictions and able to draft and negotiate contracts that meet local and international standards.
M&A Advisory
Mergers and acquisitions (M&A) are significant events for any business, and having the right legal partner on your side is essential. Commercial law firms provide a range of advisory services for M&A transactions, including due diligence, deal structuring, and negotiation. They also can assist with regulatory approvals and closing the deal.
Litigation
Commercial law firms also provide litigation services for disputes that cannot be resolved through negotiation or alternative dispute resolution methods. Their experience and expertise in commercial disputes make them well-suited to represent businesses in court or arbitration proceedings.
Compliance
Finally, commercial law firms also help businesses navigate the complex regulatory landscape to ensure compliance with all applicable laws and regulations. They can provide guidance on data privacy, antitrust, securities, tax, and environmental issues, among others.
How to Select a Commercial Law Firm
There are many factors to keep in mind when choosing a commercial law firm. You might want to know whether the firm you are considering hiring for your case has a good reputation for success in your field of concern. You also may want to consider whether or not the firm has a record of industry expertise. Some firms may be known as premier patent law or intellectual property law firms. You also might look at how other clients feel about the legal work they received as well.
It is true that when you find a law firm that specializes in the kind of case you have, you will be more likely to get better results from that firm than you would if you hired someone with no experience in your particular field. If you have a business that is related to the arts, for example, you might want to hire an intellectual property law firm with a commercial practice group specializing in art-related businesses. That way you can be assured that someone on your chosen law firm’s staff will have the extensive understanding necessary to deal with the concerns that are unique to your industry.
The Importance of Technology in Commercial Law Firms
The increasing role of technology in the realm of commerce also extends to the commercial law firms that support and facilitate these complex transactions. Many commercial law firms have begun incorporating advanced technologies such as artificial intelligence (AI) and digital platforms to further streamline processes, both in-house and for their clients. AI use for legal research is an area that many commercial law firms are beginning to utilize for the first time. AI is often leveraged for its ability to find connections in complex financial and contractual data. For example, Finlegal, for instance, is one particular AI that is of immediate value to global and international commercial law firms, especially those involved in cross-border transactions. Rather than relying on human researchers to sift through the thousands of contractual documents that arise as a part of these transactions, Finlegal utilizes a combination of supervised and unsupervised learning systems to analyze the contracts for the client. The AI then assigns a confidence level to each clause that is contained in the contract. Through these techniques, Finlegal is able to identify inconsistencies in contracts and helps commercial law firms to reduce the time and cost required for completing due diligence in a large cross-border transaction .
And while Finlegal is one of the more recent technology trends to enter the commercial law firm scene, other types of technologies have been and continue to be utilized by commercial law firms. Notably, the growth of digital platforms for contract management has increased the amount of efficiency and value provided by commercial law firms. Today, most commercial law firms utilize digital platforms that offer contract drafting, execution, and analytics. Such software allows for contract creation and drafting at a rapid rate while still maintaining a high level of organization and accuracy. Within this specific area of legal technology, two of the more widely used digital platforms are eBrevia and Luminance. Both of these platforms are used to automate the processes associated with analyzing contracts. The two technologies use AI software to create machine learning models that help commercial law firms better identify anomalies within the contracts. The capabilities of these technologies not only serve as a tool for commercial law firms to improve the services that they provide to their clients, but they also help to improve the efficiency within the commercial law firms themselves.
Commercial Law Firms and Their Challenges
The legal profession is currently navigating a host of complex and interrelated challenges. Some of the more pertinent issues commercial law firms face today include: facing increased competition from multinational firms, as well as new entrants, such as the Big Four accounting firms and business process outsourcing service providers; answering the call for transparency in billing on both contentious and non-contentious work; adapting to an increasingly globalized legal market by either establishing operations or forging alliances with other firms across jurisdictions; restructuring practices in response to the 2008 financial crisis, such as implementing alternative fee arrangements to fit burgeoning client demands for more "certainty" in legal fees; addressing requests from regulators regarding compliance efforts (e.g., AML); automating/promoting self-service and increasing efficiency through e-billing software solutions (particularly for insurance organizations); addressing common accusations levied at commercial law firms, particularly in this digital age-namely, a damaging "lack of innovation" and the need for law firms to "adapt to survive"; and effectively managing a remote workforce/starting the transition to remote work as younger personnel do not feel as bound to traditional office working norms.
Commercial Law Firms – The Way Forward
As commercial law firms continue to adapt to the rapidly evolving legal landscape, several trends are emerging that may influence future best practices. One such trend is the increasing importance of niche specialties and the emergence of boutique law firms. These smaller firms focus on specialized areas of practice, and their success has prompted larger firms to establish similar departments or practice areas to remain competitive and meet the diverse needs of their clients. This trend is likely to continue as clients increasingly seek specific expertise in niche areas of the law.
Another potential trend is a move towards more sustainable business practices within the legal industry. The legal field has historically been slow to adapt to environmental challenges, but the COVID-19 pandemic has acted as a catalyst for change. Many commercial law firms are now exploring innovative ways to reduce their carbon footprint and minimize their impact on the environment. These efforts may include environmentally friendly workspaces and the use of renewable energy sources, as well as incentivizing other businesses to do the same . Such a shift reflects clients’ growing awareness of the link between environmental and social justice and the law.
The "new normal" in the wake of the COVID-19 pandemic may also drive future changes. For example, more firms will likely see the emergence of digital offices where staff can securely visit and cross-reference sensitive information without the burden of long hours in front of a computer screen. Socially responsible work practices like four-day weeks have also been embraced by many. This can make applicants more likely to choose over other firms.
As clients become more demanding, commercial law firms must adapt accordingly. Changes in commercial real estate and trust law may be seen, especially with remote workers becoming the focus. With the advent of cloud-based tools, not only will they matter to the consumers of commercial law, but they will also matter to fledgling businesses in the legal sector. By embracing these emerging trends, commercial law firms can continue to grow and evolve in an increasingly competitive market while meeting the changing needs of their clients.