“The final signing will be on a Friday at noon and the check will be smaller than was agreed upon.”
That’s what I learned in class this week in, How to Successfully Sell Your Business, taught by Gary Bernier.
If you’re selling your business to a Private Equity firm (PE), there is a predictable sequence of events.
It starts when they schedule the closing paperwork to be finalized on a Friday afternoon.
You’ll show up feeling good because you’re about to get the big fat check that everyone agreed to. You’ve got plans for the weekend. The deal is basically done.
Oh, but it’s not.
It’s just getting started.
At the closing table, they’ll bring a check, filled out and signed, for a lower amount than you were expecting.
They’ll offer an excuse as to why the check is smaller. But you and I know that this is just a play to pay you less.
Will you take the lesser check? Or will you, knowing this was coming, counter? Or walk away?
There isn’t a wrong option. You should pick what’s best for your situation.
And whatever you choose, own it.
Because at least now, you’ll walk into that room knowing what to expect.
– Zac Smith, VC