Driving an M&A Closing

Once the purchase and sale agreement is negotiated, there is a lot to be done to get your deal closed. Examples include:

·      The execution of documents (e.g., consents, title transfers) or occurrence of events (e.g., passage of a certain date, closing a key sale, transfer of funds) that must be accomplished before closing.

·      Communication with employees, vendors, customers, and other constituents (after all conditions are met and contingencies waived, so that the closing is certain).

It is important to realize that you will likely have to be the driving force to get your deal closed. All other parties may have motives that drive a slower path to closing.

You’ll have to be creative in terms of how you drive the closing, but one good method is to use a time and responsibility spreadsheet – a much more detailed T-Minus Schedule that lists every task, who is responsible for executing the tasks, and the date by which the task must be completed. And then having regular calls with all parties to keep them accountable. A variation may be to send daily emails to the entire working group, using the time and responsibility schedule to push individual execution.  Also, we recommend a cadence of brief weekly video calls involving you, the buyer, and your advisor, if any.

GROW and SELL Advisors, wholly-owned by Traversi & Co., LLC, is a premier sell-side M&A advisory firm – a boutique investment bank – serving the lower middle market.  Visit us here.

For a short video clip on this topic, click here.