A Seller’s Diary – Month 11 – More Due Diligence
Well we had a round table discussion last week and I was surprised by the degree of intransigence shown by the buyer. Despite some successful customer interviews (glad to say that all those selected said nice things about us!) they appear hung up over a few issues – for instance potential dilapidations for our current building – despite the fact that they have no intention of moving! Whilst not that great a value – they want to provide for this in the completion accounts – which will reduce the Consideration.
Prism seem quite relaxed – and working alongside the (excellent) lawyers they recommended, have come up with some useful trade-offs which are potentially worth quite a bit more to us. I must admit that if it has been left to me alone I would probably have walked away by now – just frustration at the process I guess – but Prism reassure me that this is pretty normal and are confident of getting to a successful outcome.
I have (finally) decided to let my senior team know about the proposed transaction. The buyer is keen to meet with them, and the SPA is pretty much agreed. They were surprised and I guess a little disappointed but could see the logic in the transaction. Completion is set for the end of month so fingers crossed the uncertainty won’t last too long.