This short memo is a great way to present high level information to potential investors, or as mentioned, simply as a memo to yourself.
You mentioned that some professional fees and reimbursements were paid after closing – How was this structured with the attorney, CPA, other? Was there a not to exceed amount agreed upon? Was there a deposit paid up front?
You mentioned that the owner of the company you bought from had a failed sale before selling to you – I too had a similiar situation in where the owner was under contract to sell to another buyer and the deal fell through. Knowing that the seller was 65, not tech or finance savvy, and a bit weary from the fact that the deal didn’t close, I made sure to communicate honestly, clearly, and in terms and language that would make perfect sense to the seller. I’m positive this approach led to my successful purchase and closing over 4 years ago.
Great question and comment!
I just paid all of my legal fees and CPA fees directly out of the operating business, post-closing. Up until then, I had not received any invoices for these services.
Regarding your comment re “failed sale.” Yes, a great way to get into a deal and can definitely work in the advantage of the Buyer.
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