Picture this: You just signed the LOI on your first business acquisition.
The hard part is over, right?
Wrong.
After the rush and excitement of signing passes, you enter a unique transition period:
30-60 days between signing and closing.
Those days are just as critical as everything that comes after (which we recently covered in our 6-part series)…
And how you use this window of time will determine whether you hit the ground running or scramble to catch up.
Your two priorities during the transition
Priority #1 is completing due diligence.
This is when you verify everything the seller told you is actually true.
You’ll be reviewing 3 years of financials, auditing the management structure, meeting key employees, and checking customer contracts.
If you find problems during this phase, you can renegotiate the price or walk away entirely.
Priority #2 is building relationships before you officially take over.
Even though you’re not technically the owner yet, you need to start acting like one.
Build relationships with key vendors
Have the seller personally introduce you to their largest vendors.
Ideally, do this in person, or at minimum over a three-way call.
This prevents vendors from jacking up prices the second you take over!
Lock in the same terms the previous owner had by establishing trust early, and if it’s a critical vendor, consider sending a thoughtful gift after the introduction.
This is one of those 80/20 actions that’s super important to get right during this time window.
Understand your customer base inside and out
Ask the seller for a complete breakdown of their customers:
- Who they are
- How much revenue each generates
- And how long they’ve been with the company
If any single client makes up 10% or more of revenue, pay close attention to that relationship.
Can it transfer to you, or is it built on personal loyalty to the seller?
Review customer contracts to check renewal dates, terms, and pricing flexibility.
Start planning (but don’t execute just yet)
Use this time to plan your first 90 days, but don’t make changes until after closing.
Map out which employees you’ll meet with first, what systems you’ll document, and how you’ll introduce yourself to the team.
The seller is still running the show, so resist the urge to start “fixing” things or implementing your vision.
Prepare your announcement
Work with the seller to plan how you’ll introduce yourself to employees, customers, and vendors on Day 1.
This announcement sets the tone for your entire ownership, so don’t wing it.
The groundwork happens before Day 1
Closing day might feel like the finish line, but now, you’re starting a brand new race.
Everything you do during these 30-60 days…
- Verifying financials
- Building vendor relationships
- Understanding customers
…Determines how smoothly your first few weeks and months will go.
Do the prep work now, or pay for it later with chaos and scrambling.
And if you’re looking for your first deal…
I share business acquisition opportunities with subscribers when I find deals that meet my criteria.
If you want to receive those emails, fill out this quick form:
👉 I want to buy (or invest as a silent partner into) a small business
Or if you own a business and are looking to sell, fill this short form out:
👉 I want to sell my small business
Onward,
— Ben Kelly
