Time Kills All Deals, Part II of V

  • Time Kills All Deals, Part II of V

    Identify the individual who will coordinate the flow of all documents throughout the sale process.

    This series of blog posts covers the five critical steps to avoiding delays in the sale of your business—ensuring the transaction occurs when you want it to.

    1. Get your financial house in order
    2. Identify the individual who will coordinate the flow of all documents throughout the sale process.
    3. Identify your advisors – Investment banker, lawyer, CPA, other advisors
    4. Get your contracts organized
    5. If you want to leave the business, get your senior management team locked in

    BACKGROUND: All sales people understand that the longer it takes to close a deal, the more likely the deal will never close.  As more time passes, so many different factors can cause a deal to fall apart.  For example, the buyer finds another solution; the economic environment changes; or a critical employee resigns. 

    So, for the most important transaction – the sale of your business – you want to make sure that time does not kill your deal.  There are five critical steps to avoiding delays in the sale of your business; the second is to:

    Identify the individual who will coordinate the flow of all documents throughout the sale process.

    You will have a significant number of conversations with the investment banker and the buyer to talk about the history of the business and plans for the future.  Throughout these discussions, you will need to keep your focus on effectively running the business.

    Because of these priorities, you need to identify an individual who can coordinate the flow documents.  From the time that you hire an investment banker through the closing of the deal, someone in your organization will need to provide:

    • Financial statements

    • Customer and vendor contracts

    • Budgets & Forecasts

    • Analyses of customer and vendor sizes

    • Responses to audit and legal and due diligence questions

    Typically, your controller or CFO will be this individual because they have access to not only the financial data, but also all other information. 

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