Are customer interviews essential?

by a searcher from Georgetown University - The McDonough School of Business

6 years ago

Have been negotiating an LOI for the past 60 days. We're finally in agreement except for customer interviews, which the seller is refusing to because he fears they will disrupt the business and is not willing to take on that risk prior to closing.   
I know they're  important because: (i) they confirm clients are happy, committed to the company - the steady sales confirm this and (ii) provide potential growth ideas - we have somewhat identified those already. To those of you out there who have completed an acquisition, how useful / important did you find them?
#Customerinterviews 
  

30 likes
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11 comments

searcher from Seton Hall University - Stillman School of Business

His refusal only makes sense if he plans to stay on-board and help you build the business. Otherwise need to work with you to transition 100% of the business, especially the revenue base.

6 years ago | like reply | 1 like

investor from Stanford University - Graduate School of Business

I would strongly recommend talking to the customer even if you have to put your payment in escrow until you, at your sole discretion, are satisfied with their response. Even if the seller is 100% honest, we all see things through our own lense. You want to see the business on your terms. Good luck.

6 years ago | like reply | 1 like

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