LOI/Sale agreement time frame question

by a searcher

3 years ago

For small-market transactions 5 mil and below, what is the standard time frame in completing the sales agreement by both parties once the LOI has been signed? From my experience, it was 30 days to sign and agree on sales agreement then another 30 days of DD. I appreciate your feedback.

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searcher from Vanderbilt University - Owen Graduate School of Management

If you aren't using debt, you may be able to pull off 30 days from LOI to closing depending on the complexity of the business (which includes all diligence and finalizing the purchase agreement). But I'd give yourself at least 60 days as things tend to come up during diligence - and negotiating the terms of the purchase agreement is a legally intensive process (sellers counsel may not be willing/able to move as quickly as you'd like) . Best of luck!

3 years ago | like reply | 0 likes

searcher

Thanks Mike

3 years ago | like reply | 0 likes

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