After signing our LOI, our leadership team got consumed by diligence requests and our monthly numbers slipped. How do we structure our operations to prevent deal fatigue and performance drops between LOI and close?
Deal fatigue kills more transactions than bad balance sheets. The period between letter of intent and final closing typically spans sixty to ninety days of grueling diligence. If your key leaders take their eyes off daily execution, revenue drops, margins slip, and the buyer will immediately demand a purchase price haircut or walk away entirely.
To prevent this operational drift, split your leadership bandwidth intentionally. On your EOS Accountability Chart, formally designate a transaction deal team, ideally the visionary owner and an external M&A advisor, to handle eighty percent of data room requests, legal reviews, and buyer calls. The rest of your executive team must stay insulated from the chaos and remain hyper-focused on core business operations.
Keep your operational rhythm rigorous. Do not cancel your weekly Level 10 Meeting™. Use your Scorecard to track leading operational indicators daily and weekly so you catch customer churn, delayed shipments, or missed sales pipeline targets immediately. Treat the transaction as a separate corporate project rather than an excuse to abandon company Rocks.
If diligence workloads surge, hire fractional bookkeeping or administrative support specifically to feed the data room. Spending fifty thousand dollars on temporary diligence support is cheap insurance against a million-dollar retrade triggered by a weak trailing quarter. Protect your core engine at all costs.
Category: Valuation & Deal Structure