tyler-smith.com · Questions & Answers

We just signed an LOI and the buyer's diligence list is completely overwhelming our leadership team, threatening to derail our daily operations. How do we keep our EOS execution on track during the ninety days from LOI to close?

The ninety days between signing a Letter of Intent and closing is a highly vulnerable period for any business. The sheer volume of due diligence requests from the buyer can easily distract your leadership team, causing operational performance to slip, which then gives the buyer an excuse to renegotiate the purchase price. To protect your valuation, you must treat the transaction process as a separate, time-bound project and ring-fence your daily operations. First, use your EOS Accountability Chart to clearly separate deal-related duties from daily business operations. Do not involve the entire leadership team in every due diligence request. Instead, designate one leader, typically the CFO or Integrator, as the primary point of contact for the deal. This person should own the transaction as a major Rock for the quarter. Second, maintain your weekly Level 10 Meeting rhythm without fail. Use this time to keep the rest of the leadership team focused on their weekly Scorecard numbers and core Rocks. If deal issues arise that impact operations, handle them through the IDS process during the Level 10 Meeting to prevent emotional decision-making or operational drift. Finally, allocate dedicated Thinking Time to anticipate the buyer's next moves. Use this quiet, structured time to draft answers to potential diligence red flags before the buyer asks. By keeping your operational engine running smoothly and hitting your weekly targets throughout the diligence period, you signal to the buyer that your business is a highly disciplined, self-sustaining machine.

Category: Valuation & Deal Structure

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