Don’t Quit Your Job Before the Deal is Done

It might seem like common sense, but you should not quit your current job before you are absolutely sure that your deal is complete. People get excited about starting in the new business and give their notice and order new business cards too soon.

We had a buyer give notice, but he had not yet gotten the terms done on the lease for the building where the business resided. The landlord decided on a different use for the property and was not willing to renew the lease. This caused the deal to fall through.

In another situation, someone quit their job too early and started living off his savings account. The buyer and seller thought that the deal was going to be closed in less than a month. Banks sometimes take longer to complete deals because they look closely at every detail of the offer package. In this case, the bank took a few months. This reduced the amount of money the buyer had available for his down payment and the deal fell through.

Major Milestones before a Deal is Complete:
– Negotiations are complete and the contract is agreed to by both parties
– You have liquidated any personal funds needed for the purchase (401K, Real Estate)
– Bank has committed to fund the deal
– Landlord has signed the lease
– Licenses have been obtained
(Liquor stores, Home Healthcare, Remediation Company)