The importance of good counsel

“There is no way you would even consider creating, let alone growing a brand without good/great legal counsel,” Gregor said.

“Starting a small business, particularly a partnership that might grow/diversify/evolve over time as the business grows, needs to be well structured from the start.”

When launching his start-up, finding good counsel was at the top of Gregor’s list. “One of the first things we did when we started fermenting the idea of Four Pillars was try to seek out the best legal counsel we could afford,” he said.

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Through a friend, Gregor was put in touch with Shane Bilardi, who was named as the new Australian managing partner for global law firm DLA Piper late last year and worked with Four Pillars from the start-up phase in 2013 until the sale in late 2023.

For Gregor, Bilardi was more than simply legal counsel: he was an integral part of the business’s growth and eventual sale.

“While Shane and his team helped us with structure and agreements and all the lawyer-y bits as expected, he also became incredibly important counsel as we moved towards the sale of half our business,” Gregor said.

Following more than a decade of growth, Gregor and his co-founders sold out of Four Pillars in July 2023 for an undisclosed sum to drinks giant Lion, part of the global Kirin Group.

Recalling the sale, Gregor highlights the crucial role that Bilardi played as counsel, stating: “When we had survived COVID (thanks hand sanitiser!) and were set for a full sale to Lion, Shane and I were back at the negotiating table, and I think we understood each other’s rhythms, and we shared the same thoughts on other players in the mix.”

“I reckon our relationship with Shane and DLA Piper properly helped us get a great deal done.”

Securing strong legal counsel is not just beneficial but essential for any start-up aiming for long-term success. “You simply can’t succeed as a start-up without good counsel,” Gregor said.

General counsel for start-ups

For start-ups, the role of a good GC goes beyond handling legal paperwork – it’s about navigating potential risks and laying a solid foundation for long-term success.

Gregor explained that “there are more than you care to contemplate when you are sitting in a bar/restaurant/café/plane when you come up with a killer idea for a new start-up”.

“Everything from trademarks, partnership agreements, shareholder agreements, investment structures, contracts for tenancies, financing, distribution agreements ... the list could go on forever,” he said.

Good counsel help entrepreneurs navigate the complexities and potential pitfalls that can arise as the business evolves.

“The thing about good counsel, and I mean this in a nice way, is that they can canvas, clearly and dispassionately, what COULD go wrong along the journey,” Gregor said.

“You don’t necessarily want to start a business arrangement with a prenup, but you probably should.”

“A good lawyer will walk you through scenarios you had never thought of, issues you thought might never raise their heads.”

“Good lawyers will help you understand the minefields that might come your way if you behave a certain way.”

Why early preparation is crucial for start-ups

When it comes to building a successful start-up, Gregor stresses the importance of taking early action on legal matters to prevent potential pitfalls down the road. He advises start-ups to “do it as early as you can”.

“You might not know how to register your [trademark] in your correct category and adjacencies, and you might think right now I won’t need to do that in, say, China or India. Do it early and do it properly,” he said.

“I know of businesses that didn’t set up their trademarks correctly 30 years ago that have had a decade-long issue getting registration in crucial-to-growth China, which is costing them potentially millions of dollars in lost revenue.”

He stressed that entrepreneurs shouldn’t “shrug your shoulders and say ‘that can never happen to us’ – it can, and it probably will.”

GCs “are an essential cog in the wheel of successful start-ups. As long as they come into the environment with the attitude of getting things done.”

“Entrepreneurs want to do deals, they want to take risks, and this doesn’t always sit well with conservative lawyers, so become a creative lawyer, understand the law better than your competitors but also understand what a balanced risk is,” he said.

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