One good offer is not enough!

Selling a business is never without an element of risk. Even at the later stage of the process a deal can, occasionally, fall apart as this case study demonstrates. No transaction is fully complete until the cleared funds are securely in the seller’s bank account.

An example of this is a deal that Evolution CBS negotiated.  In this case our Client had received several very good offers and chose to accept an offer from a major plc with a history of successful acquisitions.  Heads of Terms had been agreed and signed by both parties. Due diligence was completed when, just days away from completion, the acquiring company had a last minute change of strategic direction and decided not to proceed.

This highlights the importance of having more than one potential buyer as it is unwise to assume that the preferred bidder will be the eventual buyer. It is sometimes the case that the preferred buyer will not last the course but rarely does a transaction reach the final days before a buyer backs out!

As experienced advisers, we understand the importance of keeping in contact with other potential buyers. Consequently we were able to re-open negotiations with the two other interested parties and a deal was successfully concluded.

As well as the need to have more than one potential buyer, this case also highlights the “roller-coaster” nature of business sales. It takes tenacity and a strong will on the part of a business owner and, despite the deep distress this situation caused our Client, they continued with the process and were rewarded with a successful conclusion.

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