How to speed up LOI - closing timeline?

July 13, 2023

by a searcher from Columbia University in Brooklyn, NY, USA

I’m speaking with an owner who is very concerned about quickly completing a deal (he’s been burned in the past by deals that fell apart after 6+ months). As a searcher, I know the timeline will be prolonged due to needing investors and financing.

What can I do to make the process as smooth and fast as possible while still running a thorough diligence and not avoiding unnecessary risk?

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Reply by a searcher
in Denver, CO, USA

DD is to some extent a project management process wherein the timing can be outside your control. However, the workstreams themselves tend not to be the bottleneck so much as your hitting key thresholds wherein you have conviction enough to write checks to third parties. Those thresholds are generally the same ones as might attract investors. My $0.02: do as much upfront work as you can pre-LOI identifying the top 3-5 crux "conviction issues" and see if you can't generate enough validation on them before LOI so you can quickly attract capital and justify third party spend.

Reply by a professional
from Bentley College in Miami, FL, USA

One of the keys is to make sure you have the right deal team assembled. From attorneys to diligence, you want the right service providers that can quickly get things done and are responsive. DueDilio can help with assembling this team. https://www.duedilio.com

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