Recently during the end days of a business-for-sale transaction, when it was becoming clear we might actually close the deal, the seller said to me “I have to give it to you for riding this bull so well.”
We actually did close the transaction but it was not smooth sailing. Often this is the case. In this specific transaction, there were nuances that made, it seemed, everything challenging. An usual deadline of one party going out of town for a month and the other party coming and going from town added to the stress of achieving all components necessary for a sound closing.
In the end, this is what was achieved:
1) Negotiation of a two location store sale
2) Negotiation to have the sellers continue to operate through contract with others one store, after the close, while they were out of town for a month
3) Securing of licenses, tax numbers etc by either paying a premium for fast-tracking within two days of the close
4) Releasing of some ‘must haves’ by both buyers and sellers
5) Delayed payments to seller to weather the seasonality of the business
6) Periodic lump sum payments within the structure of the financing
7) Non-competes from staff
8) Training by sellers over a short time just after close, over several weeks by contracted managers
The process of this business-for-sale transaction was not for the faint of heart. Several times over the two weeks leading up to the close the buyer and seller both resisted moving forward to the aggressive date that was set. Then each accepted the pace because, really, both wanted to achieve it. A very strong sense of trust developed between the parties that made it work. And, a broker willing to ride the bull, ensuring the timetable needs were met, contributing in unusual ways to assist, and keeping a steady hand throughout the ride.
Frankly, if Seller and Buyer cannot trust to some degree, it is very possible the transaction will not happen. The broker who pushes to hard or not hard enough can be the cause of a transaction falling apart.
Expertise in Business-for-Sale Transactions. Finally, the business broker knows all the minutiae required to close a business sale transaction. Typically, a buyer and seller may not understand all the nuances of getting the deal to closure, so it’s good to have an experienced business broker involved who can facilitate the process.