We just signed a Letter of Intent and the buyer's due diligence checklist has over two hundred items. Our leadership team is already stretched thin running our quarterly Rocks. How do we survive the sixty days from LOI to close without our operational performance slipping and giving the buyer an excuse to re-trade the deal?

Question

Tyler Smith · Accepted Answer

The period between signing a Letter of Intent and closing is the most dangerous phase of any transaction. If your financial performance dips during these sixty days, the buyer will immediately weaponize that decline to renegotiate the purchase price. To prevent this, you must split your leadership team's focus using your EOS® Accountability Chart.

First, designate one person to act as the primary point of contact for the buyer's due diligence requests. This is typically your Integrator or chief financial officer. This individual owns the Rock of managing the data room and coordinating with your investment banker and legal counsel. They must shield the rest of the leadership team from the daily friction of the deal.

Second, the rest of the leadership team must keep their eyes entirely on running the business. Keep your weekly Level 10 Meeting™ sessions sacrosanct. Use these meetings to identify, discuss, and solve operational issues that could impact short term revenue or margins. Do not let transaction discussions bleed into your operational meetings.

Third, maintain absolute transparency with your key department heads who are aware of the deal. Give them clear, short term Rocks focused on maintaining customer satisfaction and delivery standards. By compartmentalizing the transaction, you allow the majority of your team to execute the business plan while a dedicated resource manages the deal flow. This keeps your EBITDA stable and preserves your leverage all the way to the closing table.