Due diligence length and earnest money

by a searcher from Brigham Young University

1 week ago

I recently submitted an LOI on a business with about $500k SDE (I’ve since thought better of it) and the broker was adamant on limiting due diligence to three weeks and for me to put 1% into escrow as earnest money. I was wondering if this was standard practice in deals this size? I wasn't confident I could get due diligence done in three weeks or if the earnest money requirement was standard practice. Thanks all.

3 likes
335 views
39 comments

professional

It's very hard to give a timeline on diligence. It depends on the quality of data, timeliness of response and a host of other things. Irrespective of the size, three weeks looks very challenging!

6 days ago | like reply | 0 likes

searcher from INSEAD

There's tremendous power in saying 'no'.

1 week ago | like reply | 0 likes

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