CHAPTER 21 The Closing Day and Beyond Flashcards
(14 cards)
What is the typical experience of the actual closing of a business acquisition?
It is usually anticlimactic, involving document collection and wire transfers.
After closing, what is the first essential task a new owner should focus on?
Introduce yourself to employees and managers, and reassure them that no immediate changes are coming.
Why is it important to address employees right after acquisition?
To prevent unproductive speculation and begin building trust and confidence.
How specific should you be about your plans in initial meetings with employees?
Not too specific—explain that you need time to learn before making big decisions.
What is the second key task post-acquisition if the previous owner is staying on temporarily?
Clearly communicate the transition arrangement and decision-making structure.
Why must roles be clearly defined when the former owner is involved in the transition?
To eliminate confusion and ensure operational focus.
What is the third key task after closing on a business?
Take control of cash flow management.
What financial process should you establish immediately post-acquisition?
Approve all outgoing payments and review accounts receivable weekly.
What tool helps prevent cash crises in a newly acquired business?
A 90-day rolling cash flow forecast.
What is the fourth essential action a new owner should take after closing?
Meet with clients to gather insights and strengthen relationships.
What benefit did Patrick Dickinson and Michael Weiner find in interviewing clients post-acquisition?
All their new product and service ideas originated from those interviews.
Should a new owner rush major decisions in the first few months?
No—most big decisions can wait until after gaining more experience.
What mindset should new owners maintain in the first few months?
Be prepared to make daily small decisions, accept mistakes, and fix them as needed.
What can new owners expect in the weeks after acquisition?
A busy, exciting period of learning with many demands, which will eventually stabilize.
