In the Execute stage, all activities – legal, financial, and organizational – intersect to finalize the transaction. Purchase agreements are signed by employees. New legal entities are ratified and founding boards chosen. Loans are drawn on for the initial cash payment to the seller. If any leadership or management structures are planned for the execution of the sale, they begin. This stage requires committed attention from either an advisor or an internal champion to move slow external processes forward and keep employee morale high.
- WHAT: Loans are drawn, the company legally changes hands or entity, and a founding board is elected
- WHO: The selling owner; the employees; professional advisors; lenders