Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The Closing Fee Trap That Cost a Seller 31 Million
In this episode of The Acquisition Talk, Lucas and Luna dissect a $215 million deal that fell apart because of a single overlooked line in the closing fee clause. The seller, a manufacturing firm in Ohio, agreed to a 'standard' fee schedule that included a 1.5 percent closing fee — but the definition of 'closing fee' was so broad it covered the buyer's internal legal team's time. When the deal closed, the seller faced a $3.2 million charge that nobody had discussed, and the dispute over whether it was legitimate forced the seller to accept a $2.15 million…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.