A closing is where all the legal documents are signed and money changes hands in a business sale (transaction).
It is often a good idea to have a pre-closing meeting a week or so before to make sure there are no major issues that will prevent the actual closing from happening. So that everything will go smoothly.
Both the buyer and the seller should be represented by the principals, people who authority to make decisions on the spot. That means any changes will not be held up because of a lack of authority.
Have your support staff there to make last-minute changes/revisions in the legal documents and to handle the technicalities. For example, wire transfers may become problematic and you will need to be able to resolve the problem right there.
Remember, from the seller’s perspective speed is the friend of successful closings. Delays are the enemy.
Especially, don’t forget to bring your lawyer. This is important for reasons I will discuss in a later post. But think of the phrase ‘professional courtesy’. Not that lawyers are always courteous.
Don’t schedule your closing meeting for a Friday or the day before a holiday. If the closing meeting is forced to roll over until the next business day, it could be bad for the success of the transaction to have to wait over a weekend or after the holiday. Plus any funds transferred will not be able to earn interest if they can’t be invested immediately.
However, it has been my experience that most intermediaries are willing to work whatever hours it takes, regardless of the calendar, to get a deal done.
And be ready for the closing party after it is all over. If you have prepared well, used expert outside advisors, and moved the process along speedily, you (the seller) will have reason to celebrate. That may be the only good reason to schedule a closing on a Friday!
