We signed our LOI, but the buyer is dragging out the confirmatory diligence phase by requesting redundant customer interview loops. How do we set a firm timeline boundary without blowing up the deal?
Deal fatigue is a real risk, and buyers often use extended due diligence to wear down your resolve. To maintain momentum after signing your LOI, you must treat the transaction schedule like a major company Rock.
Establish a clear communication rhythm. Use your weekly leadership meeting to track diligence milestones and identify where the buyer is stalling. If the buyer demands redundant customer interviews, you must push back. Explain that excessive customer contact threatens your ongoing operations and could damage goodwill, which ultimately harms the business they are buying.
Propose a structured compromise. Under the IVS 105 Market Approach, customer stability is a key value driver, so their desire for validation is understandable. Offer them a limited sample of highly structured, blinded customer reference calls, or provide historical cohort retention data to answer their underlying questions.
Set a firm drop-dead date for the exclusivity period. Let them know that if they cannot close within the agreed-upon timeline, you will reopen the process to other strategic buyers. This shows strength and protects your team's capacity to run the business. Keep your focus on your V/TO goals to ensure your baseline operations remain strong while the deal progresses.
Category: Valuation & Deal Structure