Peace of Mind for Downsizing Companies: Virtual General Counsel
Virtual General Counsel Assist Companies in a Pinch as Companies Consolidate Legal Departments
Virtual general counsel refers to experienced attorneys in a specific industry that serve companies as trusted advisors, providing legal advice and services on an as-needed basis that a company may need for a specific event or situation where additional counsel assistance becomes necessary for a period of time. It is meant be real help in a pinch as well as a money saving option.
Legal Department Downsizing and Virtual General Counsel
Especially recently, many companies are scrambling to consolidate legal departments and/or restructure operations in money saving efforts. However, legal departments that could be considered superfluous often get cut. But what happens when a company suddenly needs that special knowledge for a merger or acquisition, the buy or sale of intellectual property, or some other special legal area that the current legal team is not fully equipped to handle?
Those attorneys that have held the General Counsel title know that they are expected to handle legal questions covering a myriad of subjects and areas of law. Even the most experienced general counsel utilize different legal teams and will at some point look to outside counsel assistance to address some legal matters. However, as many of the largest and most successful corporations seek to lower budgets and streamline business operations, their in-house counsel is left with little in-house resources, if any at all. That’s when virtual general counsel is an option to consider in finding the legal experience needed to quickly advise on or handle certain matters within a budgeted service or temporary program.
How Do Virtual General Counsel Services Work?
Companies That Can Use the Services
Companies in need of experienced attorneys to handle industry related legal issues and/or specific legal subject areas, but don’t have general counsel, or don’t have general counsel equipped to handle the matter, or even startup companies with no legal department at all, can hire “virtual” general counsel for assistance.
The Kind of Services Offered
Experienced attorneys provide virtual counsel services by providing assistance and advice for a specific legal project, or for a time period such as during the temporary leave of an in-house counsel, or even in a pinch for a client company that may need the option of calling a go-to attorney for immediate advice on a topic. The type of legal need for a company will vary as will the type of arrangement between a virtual general counsel and the company to provide the specific legal services needed.
How Virtual GC Services Are Billed
When companies need assistance for a particular legal project, such as due diligence review, an asset valuation, or other legal task that can be projected, virtual counsel will often assist on a flat fee arrangement. On the other hand, companies that need immediate support in making legal decisions related to daily operations, that require less attorney service time, but need to have a dedicated point person to contact, will often hire virtual general counsel on a retainer so service fees are applied without the need for sporadic attorney invoices, yet still allowing for budgeting through a quarterly retainer or the like. Additionally, some companies may need help requiring virtual general counsel to personally show up at the company and provide assistance as an in-house counsel would typically perform at the company, meeting with company executives and third parties as needed. Such an arrangement would likely be billed on an hourly basis, or some other hybrid billing option to aid with budgeting if necessary.
Key Takeaways for Use of Virtual General Counsel
When a company is lacking sufficient legal resources in-house, it can seek virtual general counsel to partner with the company to provide necessary legal services with the benefits of:
peace of mind an experienced attorney that understands your business needs is available when needed;
advance agreement for a billing arrangement that provides visibility;
ability to budget for legal service needs; and
the power to continue operating business as usual without triggering unnecessary concern by vendors, consumers, or other third parties.
For more information on Virtual General Counsel, see our Corporate & Commercial Overview and our Industry Focused Legal Solutions pages.