So it has been a crazy busy 45 days. I got 7 deals sold and three of them were over 2.6 million in value. Each of them almost died and in each case it could harken back to time.
During July we had several events occur that created issues with each transaction. Let us lay them out for you:
1. Hurricane Dorian- Not only a big storm but one that froze the ability of insurance companies to issue insurance. Had we not had great relationships and pushed the buyer and seller early on the checklist we would not have closed on time.
2. Several massive swings in the stock market due to trade wars with China. Why does this matter well in 2 of the cases the buyers were rolling over 401k’s and the timing of the rollover impacts the amount of funds available for deposit and the deal. Wait too long and you have no money.
3. Tariffs with China impacted cost of goods and could have soured a deal where the products were imported from China.
In almost every deal a Seller says “I am in no hurry” They say that because they want to hold the high ground in negotiations and they lack trust that the broker they are talking to is trying to get the highest price possible. Now it is on the seller and the buyer to pick the right advisors…those with a proven track record, a sense of urgency, and a mind for the clock. Sellers also think their business impervious to market dynamics but nothing could be further from the truth…particularly when the deals get bigger.
Things that impact deals include: elections, exchange rates, immigration policy, weather, stock market dips and hundreds of other variables and you need to have the right representation who manages the time and sees the issues coming in advance.