I have to believe that the most trying times in anyone’s
life is when you are getting yourself ready to close a major life changing experienced.
You have years of work on the table, planning everything that can be in the
final documents on the table. Both parties can be in the mood for a non-closing
atmosphere situation if all the paperwork is not in place. These closers are
paid to look over everything, in that moment and time. I am not talking about a closing on a house or
a car that most people go through in life. Now this can apply to all of those actions
to bring clarity in what I am talking about. I am moving into a conversation that means all
levels of supply and demand on a level of total production, and logistics,
merchandising, fulfillment, strictest planning of product placement. The person
in the middle is the organizer for both sides. Whether; you are in the gold,
crude oil, or just about any major system to complete a transaction. I believe
that when you do not have all ends of the spectrum covered this deal you are
working on will fail without predigest. The manufacture, minors, or drillers
have to handle the production level that the buyer need. The buyer has to have
their funding in order to set the production wheels in order. I have said this a thousand times, I never pay
attention to the buyers funding capability until there is funding proof from
the bank. The logistics has to be in order from there start of negotiation or
you will fail dramatically before you get to the closing table. Why, the cost structuring
needs to be in place (Ships, train, trucks, air, barges, and pipe line to terminals).
Every side has to be in place with each
section read, and with subtitles for explanations. Nothing can move forward until
all sides and in compliance with each structure. My own father has explained
this to me while putting a car together. Everything has to be put in their
proper place or you just can’t start the car. As I was explained to many times,
“Jim, there are so many pieces to this situation, that every one of these
pieces mean the deal could be won or lost.” Even after the deal is closed, you’re
dealing with the money end. I have had
companies sign contracts for just about anything in business, and with not one particular
reason to payout. Cash poor asset rich, with non-funding visions and miss
guided CFO’s. This is why to gain an education in closing a deal, on this kind
of major level; you will need a few losses to get better. It just the American
way, and I am proud of my defeats to gain more knowledge in all of my
acceptable wins. You just can’t close a deal and expect that everything will
work itself out; you will not have a deal later on, because your system will
crash very fast.
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