As the summer kicks off, many searchers are close to signing an LOI after receiving broker CIMs mid-spring. After helping 60+ searchers over the past six years with commercial due diligence I wanted to write an informative blog post providing searchers with a clean checklist of diligence items and raw data that should be requested upon signing an LOI. Many searchers reach out for help with diligence after signing an LOI with little information on the business, which materially reduces the probability of the transaction closing. Private equity firms are not signing up assets without verifying monthly financials, digging into the seller's one-time addbacks and personal expenses (especially when those small, unsophisticated brokers are involved), and evaluating customer concentration. In addition, the seller probably has summer vacation plans and many searchers themselves take time-off during the summer months (you deserve a break too), all of which can delay confirmatory diligence and put a transaction at risk. Remaining organized and digging into the highest priority diligence items around the LOI stage can save significant time and be the difference between a closed deal in ~90 days or a dead deal in 6 months. As diligence drags on, searchers lose track of time, rack up third-party transaction costs, and the odds of closing diminish. I hope you find these tips useful as you near signing an LOI and have a great summer. Happy searching! Latest Blog Post: redacted