After signing our LOI, the buyer's team has slowed down their due diligence process, and we feel our leverage slipping as the exclusivity window ticks away. How do we regain operational control and maintain deal momentum without showing desperation?
The period between signing the letter of intent and closing the deal is when your vulnerability is highest. Buyers often use dilatory tactics during this exclusivity window, allowing time to pass so your team grows tired and becomes more willing to accept unfavorable terms or price adjustments.
To maintain control, you must establish a position of operational strength and maintain optionality as outlined in our early exit strategies. Never act as if this deal is your only path forward. Keep running your business with absolute focus on your Vision, Traction, and Organizers.
Set up a structured communication rhythm with the buyer. Treat the transaction tracking like a major corporate project. Define clear milestones and deadlines for their due diligence requests.
Use your weekly leadership meetings to review transaction progress. If the buyer misses agreed deadlines, address these issues directly using the Identify, Discuss, and Solve method. Make it clear that your business continues to grow and that you will walk away if they drag their feet.
Ensure your leadership team stays focused on their quarterly Rocks. When the buyer sees that your operations are thriving and your revenue is growing during the diligence period, they realize they cannot starve you of leverage. Your willingness to walk away and your continued operational excellence are your best tools to force a timely close.
Category: Valuation & Deal Structure