We just signed our Letter of Intent, but we are warned that the phase from LOI to close is where most deals fall apart. How do we keep our leadership team focused on hitting our weekly targets and prevent performance slips during this high-stress due diligence window?

Question

Tyler Smith · Accepted Answer

The period between signing the Letter of Intent (LOI) and actually closing the deal is the most dangerous phase of any business exit. This is when deal fatigue sets in, the buyer's diligence requests reach a fever pitch, and your business is at its highest risk of a performance dip. If your numbers slide during these crucial sixty to ninety days, the buyer will use it as an excuse to renegotiate the purchase price or walk away entirely. To survive this phase, you must compartmentalize the deal. The owner and perhaps the chief financial officer should handle the heavy lifting of due diligence requests. The rest of your leadership team must remain completely focused on running the business. Use your EOS® tools to keep the business running smoothly on autopilot. Your weekly Level 10 Meeting™ becomes your shield. Ensure that your leadership team continues to review the weekly Scorecard with absolute discipline. Do not let the distraction of the impending sale creep into your weekly operations. If a metric drops, use the IDS® (Identify, Discuss, Solve) process to fix it immediately. Keep your quarterly Rocks clear and attainable. The buyer is watching to see if your team can execute without the owner's constant intervention. By maintaining your meeting rhythm and keeping the team focused on their near-term targets, you demonstrate to the buyer that the business is a self-sustaining asset, which keeps them committed to the original valuation and deal terms all the way to the closing table.