Chad Schmidt, Founder of TimoloGC, and Matt Gilbert, Principal of GaP Business Advisors, discuss creating a win/win scenario through outlining terms.
[00:08] MATT GILBERT: Would you agree that every acquisition has those variables that you have to measure risk? So there's got to be a negotiation between yourself and and the selling party on where that risk lies, how it's going to be dealt with, whether or not you discover it and tackle it now, or discover it and quantify it and hope that it doesn't come back to bite you.
[00:39] So part of the "dance" of going through a transaction to acquire businesses, is being able to negotiate that risk and communicate with the business owner in such a way that you both can move forward with what you want -- and neither party has to carry an undue burden of risk. And if you can't do that, you're not going to close a transaction.
[01:09] CHAD SCHMIDT: You're really speaking to one of the conversations that we were having earlier, which is that synergy. The ability to work together is really big focus for us. That person that's actually a true partner, that's able to handle themself in a professional and mature manner, but is also willing to work with us in the process of getting through some of the terms that come down to getting the ball over the goal line to score that touchdown. In any relationship that I've seen that has life to it, it's the little things that start to get to people. And the ability to keep the line of communication open and the transparency that both people have - those are things that help me sleep at night. The less headaches that I have to go through, the better. For me, finding that person that's willing to work together makes all the difference.