Shoot the Moon with Revenue Rocket

Between the LOI and Deal Close, What Should you Expect?

Episode Summary

Between LOI and close, there is a lot that happens. This part of the deal of post letter of intent stage is HARD and a lot of work - we get it. Tune in as we talk about our 23+ years of experience on the major steps between the letter of intent and closing a deal.

Episode Notes

You’ve done a lot of hard work of finding a suitor and there’s an LOI you’ve agreed to. We want to walk through some of the major steps as you work towards a deal close. The linear flow! First comes the LOI, then a big due diligence list which could come with a quality of earnings, then there may be a chance for renegotiation of the deal, through this process you will get different data requests (some outside of the formal due diligence list), be prepared to look at employments agreements, forecasts,  and ultimately you are working towards a finalized deal and putting things together with post integration planning. Really work hard towards that close date and be sure to have the right team and advisors by your side!

Episode Talking points:

• What does it look like after the non-binding LOI is assigned?
• What is the timeline between LOI and close?
• What approach to take during due diligence and how to not get overwhelmed
• Using an M&A Advisor for deal negotiation
• Creative solutions during this difficult phase
• Understanding the forecast for the future
• Integration & Growth planning
• When do the teams meet?
• Preparing for schedules with the definitive agreements
• Post Integration planning

Getting the Due Diligence List

• Financial: P&Ls, tax returns, AR aging, AP aging, revenue by contract, EBITDA support
• Company operations: Corporate records, employee documents, employee census, updated org charts, benefits information
• Contracts & commitments: bank loans, lines of credit, financing arrangements, customer contracts, insurance info
• Audit results: any info on past audeits
• Marketing and sales: samples or marketing material, sales experience,
• Technology audit

Related Episodes

• Episode 79: Buyer's Perspective: Due Diligence. Listen now >>
• Episode 80: Seller's Perspective: Due Diligence. Listen now >>
• Episode 104: Honoring the LOI: When to Consider a Re-Trade. Listen now >>
• Episode 105: Pre LOI and Post LOI Information Requests. Listen now >>

Listen to Shoot the Moon on Apple Podcasts or Spotify.