The buyer is using the ninety-day exclusivity window after signing the LOI to run an exhaustive technology diligence process on our proprietary AI-powered operations. How do we keep this process from dragging out and hurting our company performance?

Question

Tyler Smith · Accepted Answer

The transition window between signing a Letter of Intent and closing is the most dangerous phase of any transaction. Buyers often use extended diligence requests to wear down your leadership team, hoping that operational performance will slip so they can re-trade the purchase price at the eleventh hour. When the diligence involves complex AI-powered operations, the risk of timeline stretch is exceptionally high. To prevent this, you must run the transaction process with the same operational discipline you use to run your daily business. Establish a dedicated integration and diligence team that operates separately from your core leadership team to shield your daily operations. Create a specific Rock for the quarter focused solely on managing the transaction milestones. In your weekly Level 10 Meeting, use the IDS process to aggressively solve any bottlenecks in information delivery before they turn into multi-day delays. Set hard boundaries in your communication protocols, requiring the buyer to submit questions in batches rather than in a constant stream of disruptive emails. By maintaining a highly structured, predictable cadence of communication and tracking due diligence requests as weekly deliverables on your To-Do List, you signal to the buyer that your organization is highly disciplined. This level of operational maturity discourages late-stage negotiation tactics and keeps the transaction on a fast, predictable path to closing.