sales period
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The Conditional Sale Period of a Business Sale
When a business is sold conditionally, many sellers breathe a sigh of relief that they have found a buyer for their business and that it is smooth sailing until closing day.
This is usually not the case at all. When a business is sold, it usually enters into a conditional period where the deal can theoretically still fall apart. During this conditional period deals can take on a life of their own. This period is sometimes stressful but can also be managed to be as non-turbulent as possible. This article will examine some things that both buyers and sellers can do to make a business sale as pain free as possible during the conditional period.
Keep a clear head
A business for sale transaction is a process that is different than a property deal or other type of sale. A business sale can best be described as being a ‘fluid’ transaction. By this we mean there are multiple deal points to consider and numerous pierces of information to be confirmed and verified during due diligence. During due diligence, there is the potential for issues to come up that cause buyer and sellers to over-react. For instance, suppose the review of the premises lease determined that there are no options to extend the lease past the existing term. This has the potential to seriously affect a business so a buyer can get agitated over a discovery like this. The reality is that a standard extension is usually not an issue with landlords. The point is to remain calm and maintain perspective. Sometimes over-reacting to small issues can cause the other party to be more nervous more than anything else.

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