The Diligence Timeline from LOI to Delivery
Hey everyone! Thought this might be helpful for folks here.
If you've just signed an LOI, you know the clock is ticking. You've got aboutredacteddays to make sure your full diligence is done and every box is checked.
From a QoE provider who's done hundreds of deals over the last 5+ years, here's what actually determines which end of that timeline you land on:
What speeds diligence up:
1. Giving your QoE provider direct access to the seller and broker from day one: This is the single biggest driver of a faster timeline. The fewer layers a question has to pass through, the faster it gets answered.
2. A seller who responds quickly: The difference between a 24-hour turnaround and a five-day turnaround on document requests can add a week or more on the overall timeline.
3. Financials in a workable format: Bookkeeping software access or clean Excel exports move faster than PDFs that have to be re-worked before they're usable.
4. A buyer who responds quickly too: When we come back with a question or need a decision on something, the buyers who turn it around fast keep their own timeline moving.
What slows diligence down:
1. A material finding that needs a real conversation: When something comes up that could affect price or terms, the clock pauses so we can loop back in to see what renegotiation conversations must happen before moving forward.
2. Deal complexity: In the case of multiple locations, mixed entity structures, or anything that adds real analytical depth, the process takes longer, independent of how responsive anyone is being.
4. Slow-moving financials, from either side: Whether it's the seller producing documents or the buyer weighing in on a follow-up, delays compound in both directions.redacted