We are sixty days into due diligence and the buyer is suddenly slowing down communication and asking repetitive questions, making us suspect they are trying to wear us down for a re-trade. How do we use the Trust Equation to diagnose this drag and regain control of the transaction timeline?
When due diligence stalls, it is rarely an accident. Buyers often slow-walk the process to deplete your energy, distract your leadership team, and set you up for a last-minute price cut when you are too exhausted to fight back. To break this logjam, you must run the situation through the Trust Equation, which measures credibility, reliability, intimacy, and self-orientation.
The primary driver of deal drag is usually a spike in the buyer's self-orientation. They are focusing entirely on their own risk mitigation while ignoring your operational costs and deal momentum.
To counter this, have your visionary seat schedule a direct conversation with their deal lead. Bring your weekly scorecard to show how their requests are pulling your key people away from running the business.
Frame the issue clearly. Explain that your credibility is proven by your clean financials, but their lack of reliability in hitting diligence milestones is damaging the intimacy of the partnership.
Establish a strict list of outstanding items and set a firm deadline to complete mutual due diligence. If they refuse to commit, you must be prepared to walk. Showing that you have the discipline to protect your business is often the exact move that forces a slow-moving buyer to stop playing games and get to the closing table.
Category: Valuation & Deal Structure