Pitfalls on the path to close
October 08, 2019
by a searcher from Columbia University in New York, NY, USA
Hey all - Working on closing my first deal in this game, and getting to what feels like the final stretch. What are all the ways a deal can fall apart at the 11th hour? Would love to gather brief stories and lessons learned from the experience of this group.
from University of Vermont in New York, NY, USA
Oh, my friend, let me count the ways. Having been in the business of buying and selling businesses in the lower middle market for my entire career (30+ years), I always think I have seen it all....until the next crazy story transpires.
Here are some key tips: Stay close and involved with the seller. Make sure your financing--up and down the capital structure--is rock solid and there are no surprises. Due your diligence on key risk factors--customer or supplier or management concentration in particular. Spend time up front mutually sharing expectations with the seller and ongoing management. Your expectations....and theirs.
I could write a book on this topic, there are so many ways deals crater.
That, my friend, is why we make the big bucks.
Feel free to reach out to me directly and I would be glad to share more.
from Columbia University in New York, NY, USA