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Evaluating the True Cost of In-House Counsel: A Decision Framework for Growing Companies
There is a moment in every growing company’s life when someone in leadership asks the (potentially) obvious: “Do we need our own lawyer?
There is a moment in every growing company’s life when someone in leadership asks the (potentially) obvious: “Do we need our own lawyer? Are we too big to keep calling outside counsel every time we have a legal question?”
I am working with a coveted client on this evaluation now.
The question, timing and evaluation makes absolute sense. The company is scaling (or continues to scale – that is expanding to increase revenue or output). As a result, legal issues are becoming more and more frequent and complex. Perhaps having a dedicated in-house general counsel or attorney makes economic sense. Could they bring one or more attorneys in-house who can learn (or already knows) their business intimately, understands their culture, and can focus exclusively on their needs.
If you are currently evaluating whether in-house counsel is a logical next step for your company, you are right to evaluate the decision on many fronts. The problem is that this decision is far more complicated than the salary number on the offer letter suggests. Many companies pursuing in-house counsel overlook significant hidden costs and operational complexities. Before you commit to this path, you should understand the full financial picture and the tradeoffs involved in your evaluation.
