Author name: Hamel

Hamel
Due Diligence, Owner Conversations

Owner Conversations: Integrity Threatened During Due Diligence

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Sam – Owner of a small manufacturing company Jordan – Potential buyer doing due diligence Jordan: Thanks for sending over the financials, Sam. The margins look strong, especially the last two years. Sam: I’m glad you think so. We’ve worked hard to keep the operation lean. Jordan: I did have a couple follow-ups from my accountant. Mostly routine stuff. Sam: Sure. Fire away. Jordan: Could you provide direct access to the bank statements for the last three years? We’d like to confirm that the revenue in the reports matches deposits. Sam: Pauses. You already have the statements and the tax filings. Jordan: Right, and they look good. This is just part of our verification process. Sam: Verification? My CPA has prepared those for fifteen years. They’re accurate. Jordan: I’m not suggesting otherwise. It’s just our standard diligence checklist. Sam: It feels a bit like you think I’m cooking the books. Jordan: Not at all. When we buy a company, we verify everything independently. We do the same with everyone. Sam: Leans back. I’ve been running this business for twenty-two years. My reputation means something. Jordan: I respect that, and that’s actually why we’re still here. But my investors expect us to confirm the numbers ourselves. Sam: Sighs. I get the process… but this has been so irritatingly long. Jordan: I hear you. Let’s see if we can get this last verification done quickly so we can move toward closing.

Owner Conversations, People Considerations

Owner Conversations: Awkward Conversation with Key Employee About Sale of Company

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Characters: Owner –late 60s, founder and owner of a successful company Key Employee – late 40s, long-time employee, 20 years working together, still in his prime working years Scene: Owner’s office. Afternoon sunlight filters in. The mood is quiet, a little tense, but not confrontational. ______________________________________________________________________ Key Employee (KE): I… got a call today from Practwer. They said you might be thinking about selling the company. I have to admit… it caught me off guard. Owner (O): …They called you? KE: Yeah. And, honestly, I feel a bit hurt that this is the first I’m hearing about it—from anyone but you. After all these years, I thought we’d talk about something this big. O: (sighs) I see. You’re right. I… I didn’t think it was my place yet, and I thought it was still too uncertain to bring up. But I can see now that not telling you made it feel like I didn’t trust you. That wasn’t my intention. KE: I know you didn’t mean it that way. It’s just… I’ve been here through a lot of ups and downs with you. This company isn’t just a job—it’s part of my life. And now, hearing this from a competitor, it makes me wonder… what’s my role if someone else takes over? O: (looks down, thoughtful) I get it. Honestly, I hadn’t thought about how it would feel from your side. I should have at least mentioned that this idea was floating around. I’m sorry for leaving you out. KE: Thanks. It’s not about blaming you. I just… need to understand what comes next. My place here has always felt secure because we’ve built this together. But with a sale, it’s… uncertain. O: (leans forward) You’ve been the heart of this company. Any potential buyer would need you, absolutely. I don’t want you to even consider leaving. Your staying is crucial—not just for the company, but for me personally. I messed up by not involving you sooner. KE: (quietly) I appreciate that. I just need time to process all of this. It’s hard not knowing what the future holds. O: I get that. And you’ll have full clarity soon. I promise we’ll figure this together. I want you here, with me, no matter what comes next. KE: (nods slowly) Ok, thank you. O: And just so you know… you’re not going anywhere. The company doesn’t move forward without you. KE: (half-smile) That’s reassuring. Let’s just take it one step at a time.

Owner Conversations

Owner Conversations: The Question of What Comes Next

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Characters: David – Husband, late 60s, founder and owner of a successful company Linda – Wife, mid 60s, thoughtful, pragmatic, emotionally perceptive Scene: Evening in their living room. A soft lamp glows. Papers and a tablet sit on the coffee table. ______________________________________________________________________ David (staring at a document, sighs): I used to think I’d know exactly when it was time. Linda (looking up from her book): Time for what? David: To step away. To retire. Hand things over neatly, tie it all up with a bow. Linda (closes book, watches him): But now? David (shakes head): Now it feels… messy. Complicated. Like no matter what I do, something falls apart. Linda: Is this about the boys? David (lets out a quiet laugh): Who else? (pause) I always imagined they’d grow into it. That one day I’d look at them and just know—they’re ready. Linda: And you don’t feel that. David (firmly): No. I don’t. (leans forward) They’re good men, Linda. I’m proud of them. But running this company? It’s not just showing up. It’s… pressure. Decisions that can ruin people’s livelihoods. It’s instinct. Sacrifice. Linda: You think they don’t have that? David: I think they don’t understand it. Not really. (softly) And I don’t think they want it the way I did. Linda (quietly): I’ve wondered the same thing. (David looks at her, surprised.) David: You have? Linda: I see how they talk about it. It’s… casual. Like it’s just the next step, not a responsibility. David (nods slowly): Exactly. And this isn’t something you inherit like furniture. Linda: So what are you thinking? David (hesitates): Selling. (Silence.) Linda: You’ve never said that out loud before. David: Because it feels like failure. Like I built all this… just to hand it to strangers. Linda: Or like you built something valuable enough that someone else wants it. (He considers that.) David: If we sold, we’d be secure. More than secure. No guessing if the boys can keep it afloat. No watching things slowly unravel. Linda (carefully): But we’d be closing a chapter. For all of us. David: I know. Linda (leans forward): What about our retirement without selling? David: That’s the problem. (gestures to the papers) Most of what we have is tied up in the business. If they take over and it doesn’t go well… we’re exposed. Linda: So either we trust them and risk our future… or we sell and risk… hurting them. David (quietly): Yes. (A long pause.) Linda: Do you think they’d resent you? David: I don’t know. Probably. At least at first. They might feel like I never believed in them. Linda: And do you? (David struggles to answer.) David: I believe in them as people. (beat) I’m just not sure I believe in them as successors. Linda (nods slowly): That’s an important difference. David: I don’t want to spend my retirement worrying every day… watching numbers, stepping in to fix things, pretending I’m “retired.” Linda: And I don’t want us cutting back or stressing about money because we hoped things would work out. (She reaches for his hand.) Linda: We have to think about us too. David (squeezes her hand): That’s the part I’m worst at. Linda (soft smile): I know. (Pause.) Linda: Maybe the question isn’t “Do they take over or do we sell?” Maybe it’s… “What gives us peace?” David: Peace. Linda: Not pride. Not obligation. Not what we thought the story would be. (David leans back, absorbing that.) David: If I’m honest… (exhales) Peace looks like knowing we’re secure. That we can enjoy whatever time we have without carrying this weight. Linda: Then maybe we already have our answer. David (after a long pause): We just have to figure out how to tell them. Linda (gently): Together. (They sit in silence, hands clasped, both relieved and uncertain.) Fade out. Austec Pre-Diligence Risk Exposure System #BusinessSale #MergersAndAcquisitions #BusinessOwnership #Entrepreneurship #BusinessGrowth

Calls

When An Unexpected Buyer Calls

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When an unexpected buyer calls about your business, most owners immediately start running through questions in their head. These usually fall into three areas: trust, risk, and response. Here are the kinds of questions owners naturally ask themselves: 1. Questions About the Buyer 🤔Who is this person really?Are they a serious buyer or just fishing for information?How did they find my business?Do they have the financial ability to buy it? 2. Questions About Risk ⚠️Should I even be talking about this right now?Am I about to reveal sensitive information?Could something I say create a red flag?What if I say something that makes them lose interest? 3. Questions About Readiness 📊What questions are they going to ask next?Do I even know the answers to those questions?How much detail should I provide right now?What if I’m not prepared for their due diligence? 4. Questions About Opportunity 💰Is this a real opportunity I should explore?Could my business actually be worth more than I think?What would selling mean for me personally and financially? Would you agree or disagree?

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