Step 3: Negotiate A Deal.
Once a target company indicates a willingness to proceed to the next step, we make sure all necessary confidentiality agreements and other safeguards are in place before revealing any identities or sharing sensitive information. With all appropriate safeguards in place, the advisor introduces the client to the target company and opens up the dialogue between them to begin negotiations.
During this negotiation stage, we typically serve as the point of contact for both sides. Information and documentation are disclosed to us and then passed along to the receiving party. This ensures that we can keep track of the total picture, which is important when drafting the offer to purchase or letter of intent. These documents are typically prepared by us based on your direction and then sent to both sides for their attorneys and accountants to review. Final agreements and other documentation used at closing are usually prepared by the attorney for the seller and reviewed by the attorney for the buyer.
When real estate is included, a deal is typically divided into two transactions. The real estate portion of the transaction is taken to a title company and processed by licensed real estate brokers. Some advisors have their real estate broker license and handle these transactions, whereas other advisors refer the real estate portion of the deal to an appropriate real estate professional. At Acuity, we have a strategic network of expert resources, including real estate professionals, that we can call upon for assistance when the situation arises.
There are a variety of issues that can prevent the successful transition of a business, from price to personalities. At Acuity, we work with both sides to explore compromises or alternative deal structures that will satisfy both parties and keep the deal moving toward completion.