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.
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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.