Post-LOI milestones signal momentum and confidence. The timeline that you've communicated to the seller is also your deadline. You can include a tentative time table in the LOI itself, this demonstrates both organization and experience.
Immediately post-LOI (first 48 hours):
- Schedule Kickoff Meeting (this is more symbolic than functional) and a recurring weekly checkpoint with the seller.
- Send an extensive data request list. Provide a VDR or Dropbox folder for easy organization.
Shortly after LOI (first couple of weeks):
- Engage a QoE provider (note: your credibility increases when you spend serious money on the deal).
- Spend at least two full days in-person with the seller.
- Conduct background checks.
- Introduce the seller to specialty DD providers (insurance, HR, tax, IT/cyber).
Day 30-60:
- Schedule a site visit from the lender and/or main capital provider.
- Introduce prospective board members and industry advisors to the seller.
- Confirm that QoE validates internal financials.
- Retain legal counsel and start drafting the legal documents.
- Share the 100-day plan with the seller for input.
Day 60-90:
- Share legal docs, and push sellers to work on Disclosure Schedules.
- Finalize the employment agreement with the seller.
Dara Shareef from Benchmark International joined us on this week's Minds Capital Podcast. Check it out on Spotify, Apple Podcasts, YouTube, or via our website.
