Our transaction has moved from LOI into the definitive agreement phase, but the buyer's legal team is dragging out negotiations while our team's focus is slipping. How do we keep our leadership team aligned and maintain operational momentum so we do not miss our quarterly Rocks and blow up the deal before closing?

Question

Tyler Smith · Accepted Answer

The period between signing the LOI and reaching the closing table is the most dangerous phase of any transaction. Due diligence fatigue sets in, and the leadership team easily becomes distracted by legal drafts, financial requests, and endless meetings. If your operational performance dips during this window, the buyer will immediately use it as leverage to renegotiate the purchase price.

To prevent this, you must run your transaction using the same EOS® discipline that runs your business. First, segregate the work. Your leadership team must keep their focus entirely on the business and their quarterly Rocks. Do not let them get sucked into the deal vortex. Appoint a single point of contact, such as your CFO or an external advisor, to handle the buyer's information requests.

Second, use your weekly Level 10 Meeting™ to keep the leadership team aligned and focused on hitting their numbers. Keep the transaction off the main agenda, except for a brief status update. If a deal-related issue arises that threatens operations, use the IDS® (Identify, Discuss, Solve) process to handle it quickly and get back to business.

Finally, hold the buyer to a strict timeline. Make it clear that missed diligence milestones will result in a pause in exclusivity. By maintaining operational excellence, you prove to the buyer that your company is a self-sustaining machine that does not depend on the owner's constant intervention to succeed.