When is it appropriate to talk to the owner or do a site visit?

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October 16, 2020

by a searcher from The University of Arizona - Eller College of Management in Denver, CO, USA

Hi all - I'm a first time buyer. When is it appropriate to ask to talk to the owner or do a site visit? Post-IOI but pre-LOI? Or just post-LOI? Trying to understand when it's reasonable to request this from the broker.

Thanks!

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Reply by a searcher
from Harvard University
My timeline, for what it's worth: saw the listing on the 3rd (Sat.), got in touch w/ broker for NDA and financials over the next few days, had call (hour or so) w/ owner and broker on the 10th (Sat.). Spent the next week evaluating the industry and geography. Arranged to meet with the seller in-person on the 19th (Monday) (took time to arrange since I had to travel and work w/ seller's schedule)--discussed for several hours, saw the office, etc.
By the time I had my in-person meeting they had already had multiple meetings with and eventually broke off talks with another buyer! I signed an LOI on the 20th, but had they not had misgivings about the buyer ahead of me, I would have missed my deal. IF IT LOOKS GOOD, MOVE FORWARD AS FAST AS YOU CAN. I definitely wouldn't sign an LOI without a lengthy meeting w/ seller, but push for that asap and once you have a good feeling get the LOI done and get exclusive. There will be plenty of time/opportunities to back out during due diligence if .you decide you don't like the deal You probably even have a few days post-LOI as you discuss some nuances with the seller to really ensure you want to move ahead before you start incurring legal fees. But if it's an attractive offering, you definitely want to move as quickly as you can.
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Reply by a searcher
from The University of Arizona in Denver, CO, USA
^redacted‌ ^redacted‌ ^redacted‌ ^redacted‌^redacted‌^redacted‌^redacted‌^redacted‌ great stuff, that you all for sharing your perspectives. This helps clarify what is often times an ambiguous process. Thanks again!
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