Congratulations, you have crossed the finish line. The commercial truck dealership sale journey has reached its peak in the tenth step — Post-closing. With the deal successfully closed, it's time to exhale, celebrate and transition into the next phase.
This article explores the aftermath of a closed deal, shedding light on the lingering responsibilities of the seller in an asset sale. Key takeaways include the indispensable role of an advisory team, the significance of preparation, the virtues of patience and diligence and the enduring commitment to transparency and respect.
As you step into a new chapter, maintaining the same level of dedication to your business operations is paramount.
[RELATED: The closing: Step 9 in selling your dealership]
Navigating post-closing responsibilities:
- Accounts payable and receivables management: Post-closing, certain responsibilities linger for the seller. Managing accounts payable and receivables is one such task. This also involves settling outstanding debts and collecting receivables, including warranty receivables, from transactions that occurred before the change in ownership.
- Service and chargebacks: In an asset sale, the seller may still bear responsibilities for service, chargebacks, and extended warranty cancellations. The seller will need to work with the respective service providers to transfer accounts and responsibilities properly. Ensuring a smooth transition in these areas is vital to maintaining customer satisfaction and upholding the dealership's reputation.
- Relocating business records: Business records that need to be maintained post-closing should be appropriately relocated. This includes sensitive and essential documents that may be required for legal or regulatory compliance purposes. While some data is purchased by the Buyer, other data will need to be maintained. Typically, the seller will be afforded a window of time to relocate all records post-closing or, if stored on-site, granted access by the purchaser until the seller can relocate them.
Key considerations for post-closing success:
- Invaluable Advisory Team: The importance of an advisory team cannot be overstated. Post-closing, the guidance of your team, including your attorney, accountant, financial planner, and dealership broker, remains invaluable. Their expertise aids in navigating any unforeseen challenges and ensures a smooth transition. For example, the Legal team will address escrow hold-backs, true-ups, and post-closing claims from the Buyer. The CPA team will close year-end books and unwind the corporations. The financial advisory team will work with the seller to properly invest and allocate the proceeds from the sale. The broker advisory team will assist with any post-closing negotiations.
- Preparation is paramount: The groundwork laid during the earlier steps, from assembling a selling team to due diligence, sets the stage for post-closing success. Thorough preparation ensures that potential challenges are anticipated and mitigated, contributing to a seamless transition.
- Patience, diligence, and vigilance: Post-closing, patience, diligence, and vigilance are essential. Navigating through the aftermath of a complex deal requires a steady hand and meticulous attention to detail. Responding to any residual issues with these virtues fosters a positive transition.
- Respect and transparency: The principles of respect and transparency, which played pivotal roles in the negotiation stages, continue to be crucial post-closing. Maintaining open communication and transparent dealings foster goodwill, ensuring that all parties remain aligned in the post-sale phase.
- Eyes on the prize: While the deal is closed, the journey continues. Keeping your eyes on the prize means staying focused on the goals and objectives that prompted the sale in the first place. Whether it's personal financial goals or a desire for a new venture, maintaining clarity about your path forward is critical.
- Business as usual: Perhaps the most critical consideration is to continue running your business as if it hasn't been sold. The commitment to operational excellence and customer satisfaction that led to the dealership's success should persist post-closing. A smooth transition ensures that the legacy of your dealership endures.
[RELATED: Manufacturer Approval: Step 8 in selling your dealership]
In the closing chapter of the commercial truck dealership sale, the tenth step, Post-Closing, beckons. The deal is closed, and as you navigate the residual responsibilities, the principles that guided you throughout the process remain paramount. We shed light on the key considerations post-closing, emphasizing the continued importance of your advisory team, the foundational role of preparation, the virtues of patience and diligence and the enduring commitment to respect and transparency.
As you embark on the next phase, remember to keep your eyes on the prize and assist the Buyer in running your business with the same dedication that brought you to this triumphant conclusion.
