How we can help businesses today

Interview aired on “Radio News 24” in June 2020

Journalist: What does the BBCZ law firm do in general and specifically?

Attorney Maurizio Borra: We primarily assist entrepreneurial families, small and medium-sized enterprises typical of Veneto, but also a large part of Italy.
Our profession is structured in two phases: a preliminary strategic consulting phase, where we work with the entrepreneur to define goals and the tools to achieve them, and a technical phase.
The latter involves the necessary legal processes to reach these goals, such as agreements, crisis management for businesses, negotiations in company acquisitions or sales, or the entry of new partners, including the contractual aspects required to finalize these agreements.

Journalist: There is an unfortunate and unusual situation spreading across our country—many businesses are being forced to shut down due to Covid. What is the current situation, and where can legal consultancy provide strategic support?

Attorney Maurizio Borra: From our perspective, we believe we are at war—a war that, like World War I and II, was initially expected to last 5-6 months but ended up continuing for years.
Unfortunately, this will be a long and painful war. Entrepreneurs must understand that reopening was not the end of the tunnel but rather the beginning of a necessary restructuring of their business. Losing four months of revenue is a severe blow to many companies.
In some sectors—such as tourism—the problem is even more severe. Not only have they lost months of revenue, but the decline in activity and the lack of foreign visitors during peak months could lead many to closure.

Journalist: Clearly, as you pointed out, some industries will continue to struggle long after the lockdown ends. What should businesses do in such cases?

Attorney Maurizio Borra: There are different ways to handle a closure. There is what we might call euthanasia, a “soft landing” to prevent the destruction of an asset built over years—such as hotels or resorts.
Panic is not the answer. In a war, fear and terror are natural, but business owners must sit down with experts, discuss their company’s history, their family’s legacy, and their vision for the second or third generation if they are already involved in the business, and plan a way forward.

For a struggling hotel, options include:

A liquidation agreement to close the business in an orderly manner.
A continuity agreement, if a new partner—such as an international hotel chain—is found. This can be a direct or indirect continuation plan.
There are also other legal solutions available to entrepreneurs that they may not be fully aware of, but these options allow them to close one chapter and perhaps start a new one.

Journalist: So, solutions exist. They may be complex and challenging, but they are available. That is an important fact. Looking at the bigger picture, beyond struggling businesses, how do you see the future of companies that are managing to stay afloat?

Attorney Maurizio Borra: Some sectors have actually seen revenue growth—such as biomedical and cybersecurity—and they should take this opportunity to act strategically in two key ways.

First, they should build sales networks abroad since it is unclear when trade fairs will resume. Many small and medium-sized enterprises—those with revenues of up to €50 million—relied on trade fairs to generate orders for the entire year.
To navigate this new reality, they need to establish business networks. We have partnered with a leading consultancy firm with offices in 40 countries, as product certification, customs regulations, bureaucracy, and localizing production operations (not just for tax reasons) are complex issues.

Second, businesses should consider growth strategies—either by joining forces with others, securing financing to acquire struggling competitors, or bringing in financial partners to develop a new business plan.
To do this, entrepreneurs must think strategically, outline a clear project, and leverage external funding to eventually buy back any shares they may have initially sold.

Journalist: That is a solid recommendation. With trade fairs canceled this year, industries like tourism will suffer greatly, and finding alternative strategies is crucial. This sounds like a very promising approach.
Finally, Attorney Borra, how can people get in touch with you?

Attorney Maurizio Borra: Our website includes our contact details, as well as LinkedIn. I always tell clients that we need to meet in person and build trust.
The relationship between an entrepreneur and their lawyer is like that with a doctor—it must be based on absolute trust. If trust exists, we can achieve great results using all the technical tools I mentioned earlier.

Journalist: Perfect. We have discussed many interesting topics with Attorney Maurizio Camillo Borra. Thank you for being with us, and I wish you all the best in your work.

Attorney Maurizio Borra: Thank you for this opportunity.

Listen to the interview: