HALO Academy Two Minute Financial Drills: Closing
Description
๐๐๐๐ข ๐๐ฐ๐ฎ๐ฑ๐ฒ๐บ๐ ๐ง๐๐ผ ๐ ๐ถ๐ป๐๐๐ฒ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐๐ฟ๐ถ๐น๐น๐: ๐๐น๐ผ๐๐ถ๐ป๐ด
Navigating the Final Steps in Asset SalesโWhat Happens After You Sign?
If you've been following along, Pete Moore has breaking down what's happening behind the scenes as five groups compete to acquire 20 health clubs.ย
In our latest 2 Minute Financial Drill, he goes behind the scenes of what happens after signing an APA ("Asset Purchase Agreement.") Here's what's happening once the ink dries:
After a series of back-and-forth's (think maybe 3-5 rounds of drafts between lawyers!), both the buyer and seller are now locked into detailed representations ("reps") and warranties. Every piece of informationโdisclosures about competitors, potential lawsuits, or governmental issuesโmust be fully transparent.ย
Also? These reps and warranties don't just disappear right after closing; they can survive for years, or even indefinitely if it involves major issues like ownership or taxes.
But we're (not even close) to finished yet! ๐๐ป๐๐ฒ๐ฟ: ๐ง๐ต๐ฒ ๐๐ฒ๐ฎ๐๐ฒ ๐๐๐๐ถ๐ด๐ป๐บ๐ฒ๐ป๐ ๐ฃ๐ฟ๐ผ๐ฐ๐ฒ๐๐!ย
If you're selling a group of clubs (and don't own the real estate), every lease needs to be transferredโwith landlord consent. This means approaching every landlord individually to get their sign-off on the new buyer. If the seller is still guaranteeing any lease, efforts are made to release or indemnify them, so later liabilities don't haunt them after the sale is done.
We go into much more detail in the HALO Academy. Registration open now for our September cohort: https://www.thehaloacademy.comย
United States
