Hi Searchfunder, I'm Matt Pohl, Founder & CEO of The ReWild Group in Denver. I've bought, sold, and transitioned multiple companies, and for years we've worked with owners of 5–300 employee businesses on what happens to the organization as it grows and changes hands.
What I see over and over is this: searchers put enormous effort into the deal (sourcing, QoE, financing, legal) and almost nothing into the handoff. Then the closing happens, the seller steps back, and the new owner finds out how much of the business lived in one person's head. Key employees get nervous. Customers test the new owner. Decisions that used to take five minutes now take a week.
None of that shows up in the CIM, and very little of it shows up in the deal budget.
A few things I'd encourage anyone still searching to think about before the LOI:- Who on the team actually holds the relationships and the know-how, and how will you keep them?- What does the seller do every week that isn't written down anywhere?- How long will the seller really be around, and what will they hand over during that time?- Have you set aside time and money for the transition itself, not just the transaction?
I'm glad to be a resource here. If you're working through any of this, drop a comment or send me a message.
Matt