The buyer is dragging out the confirmatory due diligence phase past the exclusivity period listed in our LOI, claiming their lenders need more time. How do we force them to the closing table without losing our leverage or blowing up the deal?
When a buyer drags out due diligence past the exclusivity period, they are often executing a deliberate deal strategy to exhaust you, reduce your leverage, and set up a late-stage price re-trade. Do not let momentum die.
To regain control, you must treat the closing process like a major corporate initiative. Establish a weekly cadence with the buyer's deal lead that mirrors your internal management rhythm. Use a clear tracking sheet to monitor every outstanding data request and assign strict accountability to both sides.
If the exclusivity window is closing and the delay is entirely on their end, do not automatically grant an extension. Inform the buyer that the exclusivity period will transition to a rolling forty-eight hour window unless they commit to a firm closing date and submit a revised, binding schedule. This injects urgency back into their camp.
Keep your leadership team focused on running the business. If your performance dips during diligence because your team is distracted, the buyer will use that drop as a pretext to cut your purchase price. Run your weekly Level 10 Meeting™ with absolute discipline. Ensure your leadership team is focused on their quarterly Rocks, while you or a designated deal champion handle the transaction requests. This separation protects your operating performance and maintains your leverage.
Category: Valuation & Deal Structure