What Can Go Wrong at Closing?
Once the FCC has granted its consent to the sale of a station, the parties’ focus naturally turns to the closing. There always is an inordinate amount of paperwork that must be produced by the attorneys and signed by the parties to memorialize the transaction. Given the volume of paper, it is not surprising that small hiccups occur. Usually, however, the parties can work together to remedy such problems without delaying the closing. There are certain matters, however, that can seriously delay the closing or even result in the transaction falling through. The key to preventing such potentially deal-breaking problems from arising is to begin preparing for the closing as soon after the execution of the purchase agreement as possible. Five of these potential problem areas require particular attention.