Trying something new this week— Take Five is our top 5 quick weekly reads on the world of SMB, M&A, and EtA from the team at Kumo. With Kumo, you can browse 60,000+ deals from hundreds of brokers and every major marketplace, with 700+ unique deals added daily. withkumo.com
Loved the honest details behind what it takes to get to the closing table:
“The process of getting to the closing table was quite trying. First Bank of the Lake demanded many things, and the seller’s attorney made it hard to get the Asset Purchase Agreement, lease, and seller note into an acceptable form. Not that I can blame the Bank as they are risking 25% of a multimillion dollar loan, but the process was not at all smooth. Refilling out forms was a Ground Hog day scenario, and coming up with last minute additional things needed was lots of fun.
To provide an example, at 5:30 pm on the day before closing, they sent my attorney the instructions for wiring the injection funds to the bank’s attorney. Closing was set for 11 am, and of course at 5:30 pm my bank was closed. Being that my bank is over an hour and 20 minutes from my house and closing was an hour from the bank, I had to show up at my bank shortly after they opened and request a transfer, and then rush to closing. I was only a few minutes late to closing, but of course even though I submitted the request for wiring the funds, all they could guarantee was that it would happen that day. This process made the distribution of funds not go through until after 10 pm that night.
Another great example, was while in route to the bank mentioned above, I got an email from the closer at First Bank of the Lake requesting additional documents. This was absurd, and I had no way to provide said documents either in route or once I got to the closing table. So, I took the position that I would provide those after closing was done, and ignored them for the time being.”
That said, founding entrepreneurs fought a very different fight than what we’re fighting. They fought the zero to one fight, which is a battle for the right to exist. They persevered through some painful phases where it was not clear the business would ever succeed. That required a level of resilience I’m not sure I have (which is why I bought an established business).
Testing this format out to see if this is helpful or even useful to this community. We regularly post these Take Five's in our newsletter at kumo.substack.com.