Dear BTF Community,
In this story, Mike Dill, partner at Holland & Hart LLP, discusses:
- The benefits of working with a more holistic M&A legal partner;
- Solving the cost-to-value pain point; and avoiding common pitfalls.
Enjoy,
Pete
Entrepreneurship can be a thrilling journey, but it can also come with significant challenges—especially when it’s time to scale or transition a business. Mike Dill, a partner focused on M&A at law firm, Holland & Hart, shared his expertise on the complexities of helping entrepreneurs navigate these pivotal moments. Based in Denver, with offices throughout the Mountain West, Holland & Hart specializes in guiding business owners from start-up through scaling and ultimately to an exit.
Comprehensive support for entrepreneurs
Dill describes Holland & Hart’s approach as being distinct: they provide holistic, long-term support. Whether it’s securing early-stage financing, managing operational growth, or handling the complexities of selling a business, the firm stays engaged with entrepreneurs every step of the way—and often beyond.
“There are so many pain points for entrepreneurs, especially those who haven’t sold a business before,” Dill noted. “They may not realize their local neighborhood attorney might not have the expertise needed as they scale.”
With 500 attorneys, Dill said Holland & Hart is a full-service firm uniquely positioned to address these challenges. From state and local tax compliance to navigating evolving data privacy laws, the firm’s depth of expertise ensures clients are prepared for the scrutiny of potential buyers.
The Cost-to-Value advantage
For many entrepreneurs, cost is a significant concern when engaging legal services. Dill explained how Holland & Hart offers a compelling value proposition: “The biggest pain point we solve is the cost to value. My rate is equivalent to that of a third-year associate at a larger firm, but I’m available to clients in a way those firms often can’t match.”
Preparing for a sale
Selling a business can feel overwhelming, akin to what Dill describes as “a colonoscopy.” Entrepreneurs may discover gaps in their operations when viewed through a buyer’s lens. “A lot of entrepreneurs think they can pay for certain things later, but issues like state taxes or compliance with data privacy laws are on every buyer’s diligence checklist,” Dill emphasized.
To mitigate risks, tools like representation and warranty insurance have become increasingly popular. “These policies can be expensive, but they take a lot of risk off the table and avoid tying up funds in escrow for extended periods.”
Expertise and market Insight
Holland & Hart’s attorneys handle six to ten M&A deals annually per partner, giving them unparalleled insight into market trends. “It’s crucial to work with a firm that does a high volume of deals,” Dill said. “We know what market terms look like and can bring in specialized experts as needed, whether on the sell-side or buy-side.”
Dill recounted an example where expertise made all the difference. “We represented an entrepreneur with an aggregates company in the Pacific Northwest. He initially hired a real estate attorney, but that wasn’t enough to navigate the complexities of the deal. Even though I represented the buyer, we built a rapport, and I ended up guiding the transaction on both sides.”
Avoiding common pitfalls
First-time entrepreneurs often rush into deals or make foundational mistakes, such as setting up the wrong type of entity. “Something as simple as not structuring an S-Corp correctly can cost millions years down the line,” Dill warned.
Additionally, having a knowledgeable advisor—whether an internal or fractional CEO or financial expert—can be invaluable. These advisors provide an impartial perspective and ensure entrepreneurs make informed decisions beyond just legal considerations
The Art of walking away
Sometimes, the best deals are the ones you don’t make. “There’s a temptation to close quickly, but taking the time to get expert advice often pays off,” Dill advised.