tyler-smith.com · Questions & Answers

The due diligence process is taking up all my time and my leadership team is getting distracted. How do we keep the business running smoothly while trying to get this deal across the finish line?

Due diligence fatigue is a primary reason deals fall apart at the last minute because operational performance slips during the transaction. To prevent this, you must separate your deal team from your operational team. Your leadership team must remain focused on running the day-to-day business. Protect this focus through your weekly Level 10 Meeting™. Keep this meeting sacred and focused purely on weekly scorecard metrics, Rock progress, and resolving operational issues. Do not let deal talk bleed into your Level 10 Meeting™. Use the IDS® process to handle internal operational fires immediately so they do not compound. For the leaders who are involved in the transaction, practice the strategic pause. Create intentional white space in their schedules by postponing non-essential projects and letting go of unnecessary administrative tasks. This prevents burnout and ensures they have the cognitive capacity to handle the intense demands of due diligence without neglecting the company. If your revenue or profit dips during the final ninety days of a deal because your team was distracted, the buyer will use that drop to renegotiate the purchase price or walk away entirely.

Category: Exit Planning

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