The legal and finance departments are distinct yet similar at the same time. They differ in terms of tools, media, and relevant skills, but they are comparable in that they both serve a supportive role in an organisation. While finance specialists study data and financial statements, lawyers think more analytically. Fortunately, they both possess the same core cognitive abilities: reasoning, judgement, corporate responsibility, and strategic vision. That’s why the majority of experts think it’s quite feasible to switch between law and finance.
Having said that, a finance professional often has an easier time becoming a law degree mature student because it takes less technical accounting expertise to practise law. In the end, though, it comes down to the type of law you wish to practise. This article will assist you in determining if it is worthwhile for a finance professional to become a lawyer, as well as how to go about doing so.
Is it achievable?
In most cases, there are requirements that you must fulfil in order to do so. Below is a list:
Almost invariably, a JD is required (or country equivalent)
In contrast to finance, where a degree is not necessary for success, law requires one. To be taken seriously, you must hold a JD (Noah). This is partially due to the uniformity of legal education, because all attorneys receive the same degree. There are many different requirements for credentials in the finance industry, which is so broad between accounting and financial reporting. But passing the bar isn’t a requirement to work in a corporate environment. The decision on this is made by the company. Consider looking at job applications if you have an idea of the organisation you would like to work for and find out whether this is a necessity.
But you know that even after converting to law you can still provide Finance Dissertation Writing Services online to students.
You must continue practising corporate or securities law; otherwise, you will have to, as it were, “start over”
One can transition from finance to law, but not from one area of law to another. If you want to advance in your career, you must continue working in a business environment. This does not preclude you from using other fields; rather, it could require you to “start at the bottom” once more.
To become an expert in the legal field, you must have previous experience as a finance professional in that field
You must have some prior experience practising the kind of law you wish to practise; we’ll go into more detail under the “How do you do it?” heading. In essence, this means that accountants and specialists in corporate finance can become corporate attorneys. Financial analysts that deal with securities and the financial markets might also work for securities law firms, but they would find it difficult to transition into a corporate environment.
Does it make sense?
If you enjoy problem-solving and building financial models, being a lawyer might be a fulfilling job (BAW, 2022). Depending on the organisation, work hours may be more rigorous because legal documentation are required at various stages of projects. A letter of intent, shareholders agreement, share purchase agreement, new articles of association, and shareholder registry are examples of legal documents used in acquisitions. In the finance industry, one may evaluate audited financial statements and develop a valuation model. In acquisitions, finance is valuable since it provides information that is necessary for decision-making, but it also takes less time than document authoring.
From a business standpoint, there is no simple solution. Bankers often make more money than partners in prestigious law firms and investment banking that cannot even fit in law school student bags (Just kidding), but outside of New York, there are a wide range of businesses and job roles with disparate pay scales and few raw data to guide interpretation.
Put differently, it makes sense to switch from finance to law when:
- You enjoy writing and interacting with text.
- You don’t mind working on legal paperwork for longer hours at the workplace.
- Your content working for smaller companies and don’t want to work in big finance in New York City to make top bucks.
- And you can Buy Law Thesis online easily
How would one go about doing that?
What specific actions are needed to transition from finance to law, then?
- Obtain a doctorate in law (JD).
- Read legal materials frequently to become comfortable with the reasoning and concepts.
- Talk to the attorneys you currently work with to gain insight into their thought processes.
- Learn about business legal documents, including
- A shareholders agreement describes the options, rights, and processes for making decisions that are available to shareholders in a firm.
- processes for valuing shares, typically overseen by a third party
- Clauses known as minority protections, which shield the minority shareholder in the event of a dispute, consist of:
- Tag-along rights
- Dividend rights
- Right of first refusal
- Payment waterfall
- Share transfer limitations
- Shotgun clause
- Majority protections – provisions that, in the event of a dispute, safeguard the majority shareholder include:
- Drag-along rights
- Non-compete clause
- Right of first refusal
- A share purchase agreement lists the shares or assets that are going to be sold, as well as the buyers, sellers, and valuation, among other details.
- Comparing share purchase and share issuance, a purchase of shares refers to a transaction involving already-existing shares. Existing shareholders benefit from a share purchase. In contrast, share issuance refers to the issue of new shares in which a buyer contributes capital to the business in order to support operational growth, therefore diluting the entire shareholding of current shareholders.
- Shares: The quantity of shares to be sold is determined by whether the transaction involves the acquisition or issue of shares. The quantity of shares remains constant in the former case. In the latter case, the number of newly issued shares and, consequently, the percentage of ownership that each shareholder will possess, will be decided by a pre-money valuation of shares.
- Share sales: This indicates the number of shares that are registered and the number that will be sold.
- Share valuation: There are numerous factors that influence share valuation, many of which are related to finance. That being said, the legal justification for this valuation is significant since it may influence the approach taken in subsequent assessments.
- Similar to SHAs, but specifically for business-to-business transactions, partnership agreements set forth the conditions of a contract between your organisation and another. They are frequently used when a corporation has complicated relationships—like revenue sharing—with its suppliers.
- Services provided from one party to another are described in service agreements. These are essentially ordinary commercial contracts.
- Letters of intent are evidence that two parties have talked about and plan to proceed with a business deal, buy or sell an asset or business, or form a joint venture.
- Non-disclosure agreements, or NDAs, serve as a simple means of shielding one side from the other’s sharing of private information, which is frequently revealed during initial negotiations.
- Confidentiality agreements safeguard proprietary corporate information that might be revealed in talks, much like non-compete and non-disclosure agreements do.
- The working relationship between employees and the corporation is governed by employment contracts.
- Memorandums of understanding (MoUs) are a formal mechanism for two parties to agree on a project; like letters of intent, they are not legally enforceable papers.
- Non-compete agreements: These legally-binding contracts prevent one or more parties from cooperating with one another in a way that would force them to divulge confidential knowledge.
- Terms and conditions are the basic operating guidelines that a business uses for the use of its goods and/or services.
- Purchase orders are business documents that list the kind, amount, and cost of goods or services that are exchanged between a buyer and a seller.
References
Noah. Finance to Law: Breaking into Law with a Finance Background. https://analystanswers.com/finance-to-law-breaking-into-law-with-a-finance-background/
BAW (2022). How Academic Help Providers Save the Students’ Future?
https://bestassignmentwriter.co.uk/blog/how-academic-help-providers-save-the-students-future/