it's all gone wrong

boringbusiness

What a day. When I woke up this morning I thought I was well on my way to my first acquisition. I had the legal due diligence done, heads of terms in place, great dialogue with the sellers, and then it happened.

The finance company I had been working with got frustrated with the sellers. You see the sellers don't want the staff to know about the sale until the finance is secure. The finance company needs to value the assets to lend.

Chicken meet egg.

I suggested two options:

  1. Could the valuers visit under the guise the sellers are seeking to refinance some assets for working capital. OR could they visit after hours when the business is closed to view most of the assets.
  2. Day 1 cash would be less BUT once I have taken ownership they can come and do the full valuation to release another tranche of funding.

Now we wait. I am waiting to see if the sellers will agree to either of these options. However, the funder we had in place has walked due to frustrations with the sellers. I don't blame them. I am frustrated as well.

Never one to give up I have today found a new funding firm to come in at the eleventh hour and try to rescue the deal.

My reservations now stem from how inflexible they are regarding finding a solution that allows us to value the assets.

An alternative perspective:

I had a conversation with another business owner today who is selling but has told his staff. He has been transparent and let them know what to expect. I like that approach but I can understand both. Granted he is running a much smaller business which is why I think he has taken this route.

Would you tell your staff if you were selling a business? Let me know by reply.

I have a new YouTube video coming out with an update on this process and even more details. Should be live next week.

The business acquisition process continues.

Patrick