For the very first blog for Willes Capital, I thought I would share a few thoughts on closing since two days ago we “closed” our most recent deal. In no particular order:
- Hire a good attorney – <insert your preferred lawyer joke here> In all seriousness, good lawyers will make all the difference. Hire them, communicate your priorities clearly, let them advocate on your behalf, and pay them. It’s not that hard (and I never went to law school). Large transactions should not be DIY.
- Remember your long-term interest – the term “closing” was created and is used by transaction interested parties (bankers, lawyers, etc). The closing is the end of the beginning of your relationship. Other professionals will leave, but the deal will remain in place.
- To quote Aaron Rodgers, “R-E-L-A-X” – No, not now that the deal is done. Relax before closing. You never get every item to fall your way while documenting the transaction, and reasonable people disagree. You don’t have to love the guy who threatens to blow up the deal over every comma in 100 pages of documents. Take a deep breath, give him a point or two, and draw the line where you are comfortable.
- Be honest, and expect honesty – A blown deal is better (no matter how close to a closing it is) than to start a relationship and regret it later. It’s called due diligence for a reason. Expect honesty, and repay that expectation with your actions.
- You’re not Neil Armstrong – I LOVE the story about Dick Bass on a flight talking relentlessly about his exploits climbing mountains when he realized that he had been talking the entire time to the person next to him. When he apologized for not even asking the passengers name, the guy next to him replied, “That’s OK, I’m Neil Armstrong.”
Yes, we just closed another deal – our largest direct lending deal to date. We are excited about it, and are thrilled with our new partners. I am not Neil Armstrong.
