Successful Acquisitions

TIMETABLE UNTIL CLOSING

Next in the Letter of Intent is a timetable for the remainder of the acquisition process. Instead of specific dates, I suggest using time intervals. This is a way to incorporate unavoidable delays that could throw off the whole calendar. For example, it may take more time than you anticipated for the LOI to get signed by the seller, rendering subsequent dates unusable. However, if you establish a time period—such as stating that due diligence will begin fourteen days after the LOI is signed—you can hold to an efficient timetable without being a slave to the calendar.

The timetable also presents an opportunity to manage the seller’s expectations. I’ve seen sellers try to push for a closing date thirty to sixty days after ...