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AiVi Nguyen is a partner at Worcester law firm Bowditch & Dewey. Reach her at anguyen@bowditch.com.
Updated: July 24, 2023
10 Things
10 things I know about ... Why your business needs a lawyer during a recession
By AiVi Nguyen
10) Drafting new contracts. Entering a new business deal during a recession is risky. Boilerplate language is usually not enough to protect against that risk.
9) Reviewing existing contracts. Recessions cause businesses to default on contractual obligations. What is your exposure if you default or your right to damages if the other side defaults?
8) Reducing your workforce. Is it better for your business to reduce an employee’s hours, lay them off, or furlough them?
7) Pivoting. Restructuring or implementing operational changes to survive a recession will have legal implications.
6) Winding up or dissolving. You cannot simply walk away if a recession causes your business to fail. You need a lawyer to help close-up shop the right way.
5) Capitalizing. Perhaps a recession puts you in the position to buy assets or hire talent laid off by competitors. Make sure you are not stepping on a legal landmine.
4) Compliance with reporting obligations. What duties to disclose information do you have to shareholders, investors, or your board of directors?
3) Avoiding litigation. Legal fees incurred for negotiating a resolution are a fraction of the legal fees incurred if you are a party to a lawsuit, no matter what side you are on.
2) Litigating. Sometimes it is unavoidable.
1) Networking. Whether you need help or are able to help, a well-connected lawyer can introduce you to the people you need to meet.
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