I've now seen a few data rooms with differing levels and detail of data, but the most recent has less than the others. Before plugging the broker/banker with a bunch of questions, what are folks experience with how much data is appropriate to ask for pre-LOI?
For example, for the current Co i'm looking at, I have the CIM and the data room has double clicked balance sheet and income statements over the past 3 years. But I'd like to get more detailed data on trended revenue mix by product, inventory aging schedules, individual employee salaries, lease contracts, etc...
I'm sure the answer is "it depends" and varies among and between:
1. Don't expect anything more and don't ask, most LOI's will be based on the CIM and little more
2. Might as well ask and see what you can get - the more the better for the LOI and not going to hurt the deal
3. You need that info before submitting an LOI or you're wasting time
Any perspectives on those and tips for effectively getting that information?
What is an appropriate level of questions and data requests pre-LOI
by a searcher from Northwestern University - Kellogg School of Management
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
196 views
28 comments
Sign in to see all replies.
Create an account.