Time off just before closing on a business

August 05, 2021

by a searcher from Princeton University in San Francisco, CA, USA

I am under LOI for a business that looks like it may close. I am considering taking 10 days off for a vacation with the family after signing the purchase agreement and before the close of the business.

If this happens, this would be the first time closing a business for me, so I don't know if this is a really bad idea given the number of things that can come up during that time or if others here have managed to do that and it is possible.

I would appreciate any feedback from experienced acquirers! Thank you.

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Reply by an admin
from Stanford University in Honolulu, HI, USA

I look forward to hearing the advice of others. I do recall one searcher who vacationed before the close -- as i recall, he did it really as a thank you to the family for their support during the stressful 2 years and a recognition that the next stage was going to be time-consuming. I've been through many closings of intellectual property (not businesses). Based on this analogous experience, I would say being accessible by phone and computer should work, but I wouldn't go so far that I couldn't return for a face-to-face with the seller on a sticking point, if absolutely necessary. Here's what to do on Searchfunder after you've acquired: https://www.searchfunder.com/post/tip-for-the-week-what-to-do-on-searchfunder-after-youve-acquired

Reply by an intermediary
from The University of Chicago in Chicago, IL, USA

I do not recommend such time off. Many things can go wrong. Your contract has to have iron clad language to protect you for the interim period between signing and closing. It is impossible to conceive of all provisions.
You also risk bank financing I am surprised at Ron Buck's answer on this point) .
As pointed by Brian: life after close is more time-consuming. Very often, if not all the time, it is people issue. You also do not want to send employees a message of "I can take it easy".
In my 30+ years never had a buyer ask this.

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