Attorneys’ like to say that they always hope for experienced and competent counsel on the other side of a deal, negotiation or dispute. It keeps them from having to educate the other lawyer, things go smoother and go faster.
The same is true for buy-sell transactions. In the last year I’ve had a couple deals where advisors on the other side were not experienced (and in one case, a seller who was a do-it-yourselfer). This tends to frustrate others involved and causes things to go off on tangents. Here are three reasons why this happens.
1. For one, there isn’t the recognition of the importance of urgency (as when experienced deal-people are involved). Those with deal experience know that you “get the deal done” on schedule because “things happen.” Creating a timeline and adhering to it are critical.
2. There also isn’t the knowledge of what is standard operating procedure so the client isn’t educated on what to expect, what not to ask for and when to move on to the next step.
3. Finally, there isn’t the “hand holding” (of the client) that is so needed because this is often their first time buying or selling a business and it’s scary.