This play is designed to run an accelerated process and sign an M&A deal in 30 days.
Time is crucial in M&A. Buyers must quickly decide whether to pursue a deal to save time and money. Slow processes can also open opportunities for competition and increase the price of the target company. Sellers are looking for speed and certainty in selecting who to work with.
Execute this play to sign a deal in 30 days. The key to running an accelerated process is to have a very focused approach and a strong playbook that you can execute against. It is also important to get to know the target company and give them the opportunity to get to know you as the buyer. It’s all about building trust and understanding between both companies.
Deal Sponsor, Executives
Medium
30 minutes
The key to signing a deal in 30 days is to quickly understand the target company and determine whether you want to proceed with the acquisition. Here are some guidelines when preparing your list:
During LOI negotiations, request a reasonable period of exclusivity with automatic extensions, provided that both parties continue to negotiate in good faith.
Do not aim for 100% accuracy. Focus on the key factors that could influence the deal or no-deal decision. Or that could potentially influence your view on value.
Once your LOI is executed, you can also start negotiating the definitive agreement (typically after you complete the “go/no-go” portion of your diligence). This way, if no significant findings are uncovered, a definitive agreement can be finalized quickly.