Transition

MAke the Transition

The transition is perhaps the most important step in The Empathetic Buyer™ Process and the culmination of all that has come before. A transition can take a 3 to 6 months or a couple of years, depending on preparation and the complexity of the book or practice. This is especially true when clients are spread across several states.

The transition actually begins as early as the Research phase of the Process, as we are determining if and how the clients will be transitioned to the new owner and the time table for the client transfers. The best practice for the process of transition is to outline it in detail in the Letter of Intent. This does not have to go into the Definitive Sale Agreement, but it is our experience that it adds another layer of protection for the buyer to do so. The outline includes the responsibilities of both buyer and seller during the transition and timing for each step. This can even go as far as defining exactly what the seller will say to his or her former clients and when.

It may seem like overkill to include the Transition process in the Definitive Sale Agreement, because as we have mentioned, we are seeking the seller’s good graces and endorsement throughout the Process, but if it is included in the Agreement, many sellers will take their responsibilities, post-Close, much more seriously. This is particularly true if the seller knows that subsequent payments for the transaction are, in part, dependent on his or her performance of the transition steps. Again, as much as possible, any provision in the Definitive Sale Agreement should be spelled out in the Letter of Intent, because if there are to be disagreements to settle, we want to do so long before it gets to the Definitive Sale Agreement.

If you would like to learn more about how to make a Transition, or would like to learn more about how Moisson Partners, Inc. can help, select the Contact Us link below.