Selling a Business: Seller Remorse Pt 2Two weeks ago, in a post about seller remorse, I mentioned that we were involved in a deal that had begun to appear as if the seller may have gotten cold feet – roughly two weeks before the deal was scheduled to close! The buyer had spent many weeks doing its due diligence, drawing up plans to jump into the business and lining up its financing. The lender was committed and everything seemed to be sailing toward a smooth closing. So what happened since then? Two seller decisions – major components of the deal about which I’ve written often in the past – began to unfavorably impact the likelihood of the closing ever happening. By themselves, either could have derailed the deal. Together, it looked like the Titanic hitting the iceberg.
Representation Problem #1
There are still three weeks to go before the money changes hands and diligence on our part is essential.
The buyers are now saying they may close as soon as possible simply to be done with this annoyance and get on with the business of growing the business. The real estate agent, last seen speeding down the interstate away from the scene, has not been heard from. And our client is, in fact, getting a great deal I’m delighted to report!
The Bottom LineFrom a seller’s standpoint, having and listening to the right team – something I’ve harped on to anyone who would listen for almost 20 years now – would have significantly reduced the stress and acrimony, shortened what will now be an unnecessarily extended closing period and probably resulted in a higher price.
For the buyer, the wisdom of hiring a professional business broker – us – to handle the acquisition side, resulted in protection from a confrontational – not to say unethical – lawyer and a deal structure that appears to be mighty favorable. I’ll update you again on this one in a few weeks. It will either have closed or the saga will be ongoing! If you have any questions, comments or feedback on this topic – or any topic related to business – I want to hear from you. Put them in the Comments box below. Start the conversation and I’ll get back to you with answers or my own comments. If I get enough on one topic, I’ll address them in a future post or podcast. I’ll be back with you again next Monday. In the meantime, I hope you have a safe and profitable week! Joe
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