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"Times of Economic Crisis are Always A Good Opportunity For Investments" PDF Print E-mail
2009-01-05 15:59:40
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Barbaros Karaahmetolu and Thomas Luz.

As the effects of the economic crisis spreads across the United States, companies that are closing, those who cannot get their outstanding receivables, those who are freezing their investments and those who are shrinking their markets are all lining up. According to the data from the Administrative Office of the U.S. Courts, as of June 2008 967,831 companies have declared bankruptcy. With a 28.9 percent increase from the year before in bankruptcies, it is expected that in the following months as the crisis deepens this number will increase.

One of the career groups who see an increase in their workload during an economic crisis is business litigation lawyers. They are the first address when companies have lawsuits against each other. Barbaros Karaahmetoğlu, the founder of the Kara Law Firm, is a name that is very well known among the Turkish community in New York when it comes to business law, and he states that the economic crisis will only increase their business.

Karaahmetoğlu, who has been concentrating on corporate and international law, created a partnership in the beginning of 2007 with litigation court lawyer Thomas Luz, who is experienced in labor law, expanding his field of practice even more. Luz, who is licensed as a lawyer in New York, Connecticut and the D.C., worked as Vice President and consultant at NatWest Bank N.A. for the past six years.
Karaahmetoğlu underlines the fact that with his partnership with Luz the areas in which they can now serve their clients’ legal needs have expanded.

In addition to Thomas Luz and Barbaros Karaahmetoğlu, there are five lawyers working at the Kara Law Firm. Karaahmetoğlu would like to also hire a lawyer with a specialization in bankruptcy matters in parallel with the need created in the following months by the economic crisis, but the firm is still serving their clients’ needs when it comes to business, corporate law, accounts receivable law, the creation of corporations, restructuring, labor law, inheritance and branding. In addition to their office in New York, Kara Law Firm also has liaison offices in Los Angeles and Istanbul.

“FIRST TAKE YOUR PRECAUTIONS AND THEN DO BUSINESS”
With what they have learned from their experiences in the courtroom, Karaahmetoğlu and Luz give some advice to businessmen who execute sales to the U.S.

They underline the two primary causes for cases of personal action, the first one being that there is no legal foundation created before the purchase and sale. Do not act on the belief that “I am selling to a large corporation in the U.S., I am sure to get my money.” The second cause is the expectation that the lawyer on the other side will create a just and fair agreement.

Those firms that do not get legal advice before getting into a business agreement pay a lot more in legal fees once things come to a deadlock. Karaahmetoğlu and Luz point out that if their clients seek their advice before they get into trouble then their profits will be much larger.

During an economic crisis, in addition to firms that see their businesses dwindling, there are also those people who would like to invest their cash. Thomaz Luz says that the first piece of advice to those that would like to invest is, “Invest in relation to what you know.” He says, “If you know textiles then invest in textiles, if you know food stuffs then invest in the food sector. If you have cash and you are experienced in the real estate market, then this is a good time to invest in real estate.”
Karaahmetoğlu also points out that during an economic crisis branding is also a good investment.

ADVICE FOR THE TURKISH BUSINESSMAN
Karaahmetoğlu and Luz have the following advice for businessmen who would like to do business in the United States:
- Find an experienced lawyer. Instead of picking a legal firm that has some experience and knowledge here and there, pick one that specializes in a certain field.
- Let go of the way that business is done in your country; try to learn and understand the system in the United States. Know that the two systems work differently.
- Do not forget that cultural differences are also reflected in the world of business.
- In the American business world accountants and lawyers are integral, even if this is not the case in your own country.
- Know that the United States is comprised of 50 different states and that if needed you may have to consult a different lawyer for each state you do business with. Choose a legal firm with a good network.

BEFORE YOU START DOING BUSINESS
- Research well the company to whom you are selling. Is it a good company? Are they consistent in paying their debts? Research whether they have a bad reputation in their field.
- Meet one on one with your clients. See with whom you are doing business.
- Research whether or not the company with whom you are doing business has been sued for outstanding debt.
- There may be companies who try to take advantage of the fact that you are inexperienced in the market, so do market research to prevent this.
- Be patient. There is no reason for a good businessman not to do well in the United States.
Last Updated ( 2009-01-05 16:02:14 )
 
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