We just signed our LOI and the buyer's due diligence requests are threatening to paralyze our daily operations. How do we structure our internal leadership team to drive this deal to a close while still hitting our quarterly Rocks?

Question

Tyler Smith · Accepted Answer

Signing a Letter of Intent is where the real work begins, and it is also where most deals die due to operational neglect. To prevent deal fatigue from tanking your performance, you must bifurcate your leadership team immediately. Do not allow your entire team to get sucked into the data room.

Your Integrator must remain 100 percent focused on running the business, leading the weekly Level 10 Meeting, and ensuring the team hits their quarterly Rocks. The day to day operations cannot falter, because any dip in performance gives the buyer an excuse to re-trade the deal at the closing table.

Assign the transaction burden to a dedicated deal team. This team typically consists of the Visionary, your Chief Financial Officer or outside controller, and your transaction advisory partners. This team should leverage their conative strengths, specifically those with a high Follow Thru profile on the Kolbe Index, to systematically manage the due diligence checklist.

By isolating the due diligence process to this small group, you protect the rest of your leadership team from distraction. Keep your regular operating system running without interruption. This discipline demonstrates to the buyer that your company is a self-sustaining machine, which actually validates the premium multiple they agreed to in the LOI.