Where a simultaneous signing and closing of a transaction is not possible, the elements around the interim period (between sign and closing) need to be mapped out clearly. Both the seller and the buyer will look for stringent controls for polar opposite reasons: the seller will certainly have the deal closing at price and the buyer, to protect their right to exit a deal should they so desire. Extra negotiations and time should be allocated around issues such as permissions and procedure for things such as level indebtedness, cash flows, resource allocation and contract execution, will be crucial in ensuring both parties’ ability to react to market shifts quickly and efficiently.Looking to buy or sell a business?
Feel free to reach Allison Dent at info@adcorporatefinance.com
