When to Share the Keys to the Data Room as an M&A Seller

Once you are under an LOI, you’ll provide the buyer with access to your Data Room. We suggest scheduling a call with the buyer and whoever of their representatives will be conducting due diligence and walking them – in summary form - through the contents of the Data Room, encouraging them to reach out to you with any questions.

You would be reasonable to assume the buyer will be working rapidly to conduct its due diligence and close the transaction. But we know that, for any number of reasons, buyers can drag their feet. The LOI typically specifies a target date for closing, and you should manage the buyer, buyer’s advisors, and your own advisors to the T-Minus Schedule to ensure the transaction closes on time. As we have mentioned, we are big believers in flow, and if you allow the flow to slow, the transaction can derail.  Time is the enemy of an M&A deal!

GROW and SELL Advisors, wholly-owned by Traversi & Co., LLC, is a premier sell-side M&A advisory firm – a boutique investment bank – serving the lower middle market.  Visit us here.

For a short video clip on this topic, click here.