Smooth is fast. We all want smooth and fast transactions, and if 2025 receives the increased supply volume we all hope for, it is important to move quickly and optimize closures. The Essentials of a Smooth Transaction, a list I developed after a rocky transaction with a client, follows.
1. Be organized
A checklist is a start. Enter all diligence and transaction documents required for closing into the checklist. Next to each checklist item, identify the person or persons responsible for the item. Stop a beginner. Use the call to identify issues that dictate a specific closing date or threaten to delay closing. Reach an agreement on the closing date. Run the checklist to confirm that everyone has a common understanding of each checklist item, understands which person or people are responsible for each item, and the status of each item. Update the checklist and repeat the checklist routinely until closed or until the checklist can be reduced to a list of no more than four to eight simple items that can be managed via email. Set clear roles in your team. Collect signature pages early, at least two to three business days before the closing date.
2. React
Deliver documents and information promptly. Observe deadlines or declare a deadline extension before the deadline expires. Turn around draft documents quickly (e.g., within five or fewer business days, more or less, depending on the number and size of documents and issues). Evaluate documents immediately as received. Don't give anyone reason to be frustrated with your responsiveness. Press others to do the same. Delays create unnecessary frustration and costs. Time kills all business.
3. Be sensible – there is no one for everyone
Match the length of the checklist, requests for information and transaction documents to the size and risk of the deal. Request the information you need and no more. Current documents that are “market” are consistent with the term sheet and cohesive. Business people should read the documents and not blindly defer to the consultant. Request document revisions that are “market.” If you have doubts about “Market”, ask people you trust and ask your question with an explanation of deal size and unique deal risk – “Market” can be related to size and risk Deal vary. Be prepared to respectfully disagree at the edges of what constitutes “market.” Protracted negotiations over outrageous requests for information or deal terms benefit no one.
4. Be proactive
If no one is driving the transaction (i.e. routine calls, delivery of checklist items, etc.), accept that role respectfully, even if the role is normally filled by someone else. Get the deal.
I wish you many smooth and fast transactions.