{"id":561334,"date":"2020-11-14T03:00:47","date_gmt":"2020-11-14T08:00:47","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbmadison\/what-makes-a-deal-close\/"},"modified":"2022-01-31T12:41:52","modified_gmt":"2022-01-31T17:41:52","slug":"what-makes-a-deal-close","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/what-makes-a-deal-close\/","title":{"rendered":"What Makes a Deal Close?"},"content":{"rendered":"
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For every reason that a pending sale of a business collapses, there is a positive reason why the sale closed successfully.\u00a0 What does it take for the sale of a business to close successfully?\u00a0 Certainly there are reasons that a sale might not close that are beyond anyone\u2019s control.\u00a0 A fire, for example, the death of a principal, or a natural disaster such as a hurricane or tornado.\u00a0 There might be an environmental problem that the seller was unaware of when he or she decided to sell.\u00a0 Aside from these unplanned catastrophic events, deals abort because of the people involved.\u00a0 Here are a few examples of how a sale closes successfully.<\/p>\n

The Buyer and Seller Are in Agreement From the Beginning<\/b><\/strong><\/p>\n

In too many cases, the buyer and seller really weren\u2019t in agreement, or didn\u2019t understand the terms of the sale.\u00a0 If an offer to purchase is too vague, or has too many loose ends, the sale can unravel somewhere along the line.\u00a0 However, if prior to the offer to purchase the loose ends are taken care of and the agreement specifically spells out the details of the sale, it has a much better chance to close.\u00a0 This means that a lot of answers and information are supplied prior to the offer and that many of the buyer\u2019s questions are answered before the offer is made.\u00a0 The seller may also have some questions about the buyer\u2019s financial qualifications or his or her ability to operate the business.\u00a0 Again, these concerns should be addressed prior to the offer or, at least, if they are part of it, both sides should understand exactly what needs to be done and when.\u00a0 The key ingredient of the offer to purchase is that both sides completely understand the terms and are comfortable with them.\u00a0 Too many sales fall apart because of a misunderstanding on one side or the other.<\/p>\n

The Buyer and Seller Don\u2019t Lose Their Patience<\/b><\/strong><\/p>\n

Both sides need to understand that the closing process takes time.\u00a0 There is a myriad of details that must take place for the sale to close successfully, or to close at all.\u00a0 If the parties are using outside advisors, they should make sure that they are deal-oriented.\u00a0 In other words, unless the deal is illegal or unethical, the parties should insist that the deal works.\u00a0 The buyer and seller should understand that the outside advisors work for them and that most decisions concerning the sale are business related and should be decided by the buyer and seller themselves.\u00a0 The buyer and seller should also insist that the outside advisors keep to the scheduled closing date, unless they, not the outside advisors, delay the timing.\u00a0 Prior to engaging the outside advisors, the buyer and seller should make sure that their advisors can work within the schedule.\u00a0 However, the buyer and seller have to also understand that nothing can be done overnight and the closing process does take some time.<\/p>\n

No One Likes Surprises<\/b><\/strong><\/p>\n

The seller has to be up front about his or her business.\u00a0 Nothing is perfect and buyers understand this.\u00a0 The minuses should be revealed at the outset because sooner or later they will be exposed.\u00a0 For example, the seller should consult with his or her accountant about any tax implications prior to going to market.\u00a0 The same is true for the buyer.\u00a0 If financing is an issue it should be mentioned at the beginning.\u00a0 If all of the concerns and problems are dealt with initially, the closing will be just a technicality.<\/p>\n

The Buyer and Seller Must Both Feel Like They Got a Good Deal<\/b><\/strong><\/p>\n

If they do, the closing should be a simple matter.\u00a0 If the chemistry works, and everyone understands and accepts the terms of the agreement, and feels that the sale is a win-win, the closing is a mere formality.<\/p>\n

Copyright: Business Brokerage Press, Inc.<\/a><\/p>\n

tonefotografia\/BigStock.com<\/a><\/p>\n<\/div>\n

The post What Makes a Deal Close?<\/a> appeared first on Deal Studio – Automate, accelerate and elevate your deal making<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

For every reason that a pending sale of a business collapses, there is a positive reason why the sale closed successfully.\u00a0 What does it take for the sale of a business to close successfully?\u00a0 Certainly there are reasons that a sale might not close that are beyond anyone\u2019s control.\u00a0 A fire, for example, the death […]<\/p>\n","protected":false},"author":2,"featured_media":561336,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5,3],"tags":[],"class_list":["post-561334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer-articles","category-seller-articles"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/posts\/561334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/comments?post=561334"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/posts\/561334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/media\/561336"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/media?parent=561334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/categories?post=561334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/tags?post=561334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}