Strategies To Cover Acquisition Costs

August 08, 2024

by a searcher in Oakland, MD, USA

Does anyone have proven strategies when it comes to covering acquisition costs, such as retainers, quality of earnings, legal, site visits etc?

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Reply by a professional
from University of Calgary in Vancouver, BC, Canada

I am a little late to the party here. This is technically not about covering costs, but many of our clients would hold off doing fulsome legal due diligence until they have sent out a draft purchase agreement and have received comments from the other side. I have seen it done the other way too (i.e. DD first then agreement drafting). This approach mostly helps you mitigate costs for broken deals since you can control the workload (and fees) of the advisors. For successful / closed deals, we let most of our clients pay at or post-closing.

Thanks for the tag ^redacted‌.

Reply by a searcher
from University of Tromsø in Dover, Delaware, USA

If you find professionals that believe in you/your deal you can get most of these costs deferred to closing

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