Here in London, the month of June is arguably the best time for international tourists to visit the city. What with the pageantry of The Trooping of the Colour, Royal Ascot, Henley Regatta, Wimbledon, and major music acts in town, it is a sporting and social mecca. However, unseasonal rain and cool temperatures, as visitors are experiencing this week is an occupational hazard. It necessitates everyone has a plan B and C for what to see and do, and what to wear.

The same is true for an entrepreneur having prepared their business for sale, selected a preferred bidder and negotiated the terms of a deal. Here is three common situations:

1. Misunderstandings arise when a whole new group of advisers –
   lawyers, accountants, bankers and other financial advisers – arrive, when they’ve not been privy to the negotiations or to the nuances of the conceptual agreement reached.
2. Highly important issues arise in the due diligence process.
3. There is a deterioration in the financial performance of the business.

What is your “wet weather” option?

You need a mixture of preventative and contingent actions.

“Preventative“, in the form, of a growing peer level trusting relationship and intimate dialogue with what I term, the “economic purchaser”. The individual with the means and authority to approve the purchase, whose P&L will pay you for the business, who has the veto right or will claim credit for the acquisition or investment. Where you can ask the economic purchaser to intervene where his or her lawyers are hung up on moderate or low importance issues and threatening to delay or derail your agreement.

“Contingent“, in the form of

1. a willingness to end the discussions with the purchaser if your objectives are not being met.
2. you can quickly attract alternative ideal bidders (personal/emotional connection to you and/or the business, have a need or one that can be easily rekindled for the investment, can move fast and possesses means and authority to pull the trigger).
3. ceasing the entire sale process.

Experienced sellers know there are no guarantees, just as those tourists splashing through the rain towards the Tower of London and the London Eye must accept this week.