Every company, irrespective of size, at some point needs a variety of service professionals. The amount and experience these professionals possess can substantially add value to your business and mitigate risk.
Technical matters of law, financial audit, tax, industrial marketing and public relations are usually best handled by outside experts. Attorneys, auditors, tax experts, public relations and industrial marketing professionals have specialized knowledge and skills that you couldn’t and shouldn’t hope to duplicate.
Clark-Reliance’s business philosophy has always been that we make service professionals an extension of our team. We frequently invite them to sporting events, company dinners and other internal events. Knowing our service professionals on a personal basis and allowing them access to know our staff makes it a better and more effective partnership.
Our senior management works closely with these providers so that they can answer questions efficiently and quickly whether it’s a simple or complex business issue.
It is also good practice to formally meet with service providers on a frequent basis, even if the meeting is only an update. This practice will allow your providers to gain a better understanding of your business and provides a discussion forum that is different than just dealing with them on an as-needed basis or for “crisis interventions.”
Whether you have in-house counsel or not, outside legal service providers are an imperative partner to help you grow and protect your business. Partnering with a reasonably sized firm allows you access to worldwide contacts, practices and procedures.
Almost everyone has four distinct reasons to use an attorney or specialized law firm, even if you do employ general counsel:
Acquisition — When your company is engaged in an acquisition, you need a highly specialized legal team to provide expertise in areas such as due diligence, negotiation, asset acquisition, purchase agreements, taxation and employment transactions.
Intellectual property — The need to safeguard your new product ideas can be ensured by a highly specialized attorney who can protect and defend your intellectual property, patents, trademarks and copyrights, both domestically and worldwide.
Product liability — The misuse and misapplication of products that have been sent into the stream of commerce may result in litigation or unjustified claims that need to be addressed by competent legal counsel.
Labor and employee issues —The multitude of employment law issues, regulation and compliance requirements and employer/employee legal issues demands a working relationship with a labor/employment legal professional.
The changes in the United States Federal Tax Code and the continuing compliance with tax laws for federal, state and local taxation demand comprehensive and technical knowledge. Most companies also need to have audited financial data for borrowing purposes or to meet public company regulations. This highly specialized and technical knowledge can only be accessed through a tax and financial adviser.
There are four areas where a financial/tax service professional can assist any business.
Taxes — Whether you are an S-corporation, C-corporation or LLC, you need to have a tax adviser analyze the tax implications of business decisions to ensure that you are properly taking advantage of the complex tax code.
Grants and tax credits — The research tax credit remains a valuable source of support to businesses that conduct qualified research and development.
Acquisition process — During the acquisition process, it is imperative to include your financial advisers in terms of due diligence and specific issues like goodwill, inventory valuation and working capital adjustments.
Audit — Private or public, it is a good idea to have your financial data analyzed and scrubbed by experts in areas of revenue recognition, inventory valuation and off-balance-sheet transactions.
Utilizing service professionals provides a road map to avoid the pitfalls that can present significant obstacles to your business success. ●
Matthew P. Figgie is chairman of Clark-Reliance, a global, multi-divisional manufacturing company with sales in more than 80 countries, serving the power generation petroleum, refining and chemical processing industries. He is also chairman of Figgie Capital and the Figgie Foundation, a member of the University Hospitals Board of Directors, corporate cochairman for the 2013 Five Star Sensation and chairman of the National Kidney Walk.
Rick Solon is president and CEO of Clark-Reliance and has more than 35 years of experience in manufacturing and operating companies. He is also the chairman of the National Kidney Foundation Golf Outing.