The Closing
Transfer of ownership
The Closing will be conducted by a Transaction Attorney who prepares the necessary documents but doesn't represent either the Buyer or Seller. The Advisor will suggest several attorneys. One will be selected by mutual agreement of the parties. The closing attorney will conduct a final lien search just before Closing to assure no new liabilities exist. A closing statement is prepared detailing the sources and distribution of funds at the closing. A preliminary set of closing documents are provided for review by the parties a few days prior to closing. The closing package may include the following:
  • Buyers & Seller closing statements
  • Asset Allocation Agreement
  • Corporate resolutions
  • UCC-Financing Statement
  • Promissory note
  • Security agreement (chattel mortgage)
  • Non-competition Agreement
  • Bill of Sales & General Assignment
  • Equipment list
  • Assignment of trade name
  • Collateral assignment of lease
  • Conflict of interest disclosure & consent & waiver
  • Closing agreement
  • Escrow closing agreement

If prior to closing issues arise that jeopardize the deal the Advisor works to resolve the issues or reschedule the closing. On the day of closing all parties meet at the office of the closing attorney. Prior to closing certified funds are deposited by the Buyer in the closing attorneys escrow account. At closing the agreements are executed, checks are distributed and ownership is transferred to the Buyer.

 Transition Period
 Typically the "familiarization period" during which the Seller and Buyer cooperate to achieve a smooth transition can range from a few weeks to several years.

Summary
Business Acquisition Process
An acquisition project can take from 90 days to nine month depending on the characteristics of the deal. The Advisor may invest hundreds of hours into a deal to achieve a closing. Because of the intimate nature of this process the Advisor cannot achieve the best result without the trust and confidence of the Buyer and Seller.

We have described the Business Succession Process so you are better prepared to play your role in the process. It has been our experience that "If it can go wrong it will go wrong". You Advisor will "tell it like it is" whether you like it or not. Closing a bad deal benefits on one. The keys to a successful business acquisition is a clearly define goal, commitment, money, and choosing the right Advisor.

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