Transaction reality · On both sides
Closing the deal does not prove the business successfully transferred
Published · Reviewed by The Diligence Standard Team · Updated
Legal ownership can change in one day. Operational ownership cannot always do the same.
How it appears in a real transaction
The value may depend on people staying, accounts transferring, licenses remaining valid, customers accepting the new owner and undocumented knowledge being handed over.
A practical example
The buyer owns the assets on Monday but lacks administrator access to the scheduling system, the senior technician resigns and the largest customer only dealt with the seller.
What to do next
- Build a written transition plan with owners and deadlines.
- Confirm systems, accounts, data and permissions before closing.
- Plan customer, employee and supplier communication.
- Measure the acquisition case against actual results after closing.