After an agreement in principle is reached, delay equals risk for the seller. Missing or incomplete paperwork will delay closing. Sell future profits. Emphasize anticipated gains and market expansion-not past revenues. Document these expectations.
Decisions made in anticipation of a closing can be costly.
Invest in audited statements. Financial statements audited by a certified public accountant will enable you to close faster, make fewer and shorter guarantees, and demand more cash at closing. Understand the financing. Before signing anything, know the buyer's financing plans, including sources of equity, bank debt, or subordinated debt. You won't be told unless you ask.