- within Corporate/Commercial Law topic(s)
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- in United States
- with readers working within the Consumer Industries industries
In business transactions, buyers and sellers tend to obsess over the big issues: purchase price, financing terms, governance structures. Yet it's often the smallest details that create the biggest headaches. One of those details? The humble Employer Identification Number ("EIN").
The Scenario
Picture a deal that closes without a hitch. Documents signed, wires confirmed, champagne corks popped. Everyone breathes a sign of relief. Then, weeks later, a problem surfaces: a single digit in the company's EIN was wrong. Suddenly, routine follow-up tasks become complicated. Reports don't match, agencies raise questions, and what should have been a smooth post-closing process turns into a scramble.
Why It Matters
- Small errors ripple outward: A typo may seem minor, but it can trigger confusion across banks, agencies, and counterparties.
- Delays cost time and trust: Even if the deal is technically done, post-closing hiccups erode confidence and waste resources.
- Details define professionalism: Clients and partners notice when the "little things" are handled well and when they aren't.
Lessons Learned
- Double-check identifiers: Numbers, names, and dates may look routine, but they carry weight.
- Slow down at the finish line: The rush to close often leads to overlooked details. Build in time for review.
- Treat small details as big ones: A single digit can be the difference between smooth sailing and sleepless nights.
Closings are celebrated as the end of a process, but they are also the beginning of what comes next. Your team's diligence in reviewing the fine print and catching small errors ensures that the champagne corks popped at closing mark the start of smooth sailing ahead, not the beginning of frustration. Precision in the details is what keeps the celebration intact.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
