top of page
Conversation Between Colleagues

Diagnose Your Business's Legal Stability 

GET A LEGAL RATING FOR YOUR BUSINESS

Home: Welcome

What is a Business Legal Rating?

Think of it as a physical for your business.  We ask the questions that help you as a business owner assess where your business is strong and where you need to improve.  Your scores will indicate how legally secure your business is and where we can help you shore up any potential liabilities or weaknesses.

The Natural Use Cases in Your Market

Mid-cap companies in the $10M-$500M range face specific scenarios where this could be valuable:

Buy-side M&A due diligence: Private equity firms and strategic acquirers need to move fast. If you can deliver a preliminary legal rating in 48 hours vs. 2-3 weeks of traditional review, that's compelling. It doesn't replace full due diligence, but it helps them prioritize targets and identify deal-breakers early.

Sell-side preparation: Companies preparing for sale could use your rating to identify and remediate issues before going to market. A "legal readiness score" could even become a selling point - "We've been pre-vetted and rated clean."

Lender requirements: Banks lending to mid-cap companies might require or value an independent legal rating alongside traditional credit analysis.

Portfolio monitoring: PE firms with 15-20 portfolio companies could use ongoing ratings to spot emerging issues before they become crises.

The Paradox

Companies from $20M - $500M are in a dangerous zone:

  • Too small to justify a full-time General Counsel ($250K-$400K fully loaded)

  • Too large to operate without serious legal risk exposure

  • Too cost-conscious to engage outside counsel proactively - they only call lawyers when there's a crisis or deal pending

  • Too busy with growth to prioritize legal hygiene until it becomes expensive

So they accumulate legal debt like technical debt - small decisions that seem fine in isolation but compound into serious problems. By the time they're ready to sell or raise significant capital, they're sitting on issues that take months and significant money to remediate.

Market Opportunity

A legal rating system could serve as the "wake-up call" these companies need:

For the company itself: An annual legal health rating for $25K-$40K is vastly cheaper than a full-time GC, but gives them objective visibility into problems before they're catastrophic. It's preventive medicine vs. emergency surgery.

For their board/investors: Existing investors could require periodic ratings as a governance measure - similar to how they require audited financials. It protects their investment without adding headcount.

For potential buyers/lenders: When these companies eventually seek an exit or financing, having recent clean ratings accelerates diligence and can improve valuation. Sellers could even advertise "Certified Legal Rating: A+ as a competitive advantage.e.

It is absolutely free to take and you get the results immediately.  So go ahead and take the survey and see how your business is doing!

Home: Bookings Widget

Contact Us

100 Crescent Court, 7th Floor

Dallas, TX 75203

214-476-0920

Thanks for submitting!

Home: Contact

Subscribe Form

Thanks for submitting!

8013699651

  • Facebook
  • Twitter
  • LinkedIn

©2021 by Business Legal Ratings Inc.. Proudly created with Wix.com

bottom of page