Video 2 – Biggest Challenge to Completing A Deal When Selling a Business

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Rob Goddard:

So biggest deal challenge today, Mike?

Mike Whittle:

Yeah, I mean I can think of several examples but certainly at completion, a last minute miscalculation in some of the numbers. Causing everyone to have to go back to the drawing board very rapidly. But I think this lends itself very centrally to our message of finding the right buyer. Because if you’ve got the right buyer at the table, if you do hit a last minute road block, you’re more likely to be able to resolve that together. Whereas if you’re with someone who’s buying purely on financial reasons. If the numbers don’t add up, they want a chip the price. I think that’s probably a learned that one from that one for me.

Rob Goddard:

Absolutely. Steve?

Steve Barry:

I can think of two. As a general rule of thumb, buyers and investors don’t like surprises. So you don’t need things coming out either during the sale process, or during due diligence that could have been avoided. So, that’s why we plan. We work hard to make sure we try and surface those issues before we ever get to market. And ironically as well, and very specifically, challenges with the existing management team members causing difficulty for the shareholder or owner. Because they’re not completely aligned to the sale process. And that can be quite problematic. And again, that needs to be thought about ahead of the process to make sure they’re aware of what it means to them, and think about how you can get them on side and prepared to support the process.

Mike Whittle:

Yeah. Very good point.

Rob Goddard:

Just one immediately comes to mind. In my 20 years of selling several hundred businesses. My client going on holiday just before completion. It wasn’t just a holiday. It wasn’t just a week or two in Southern France. It was a three month cruise around the world. And we had to get him to go into Panama to find some office bureau, fax bureau to sign documents. He thought his lawyer could do it all for him. So please don’t go on holiday at critical points.

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