Deal Sequence in Acquisition

Getting the proper deal sequence down as a buyer is very important! If you go outside of the proper sequence (Some selling brokers will try this) you lose a lot of leverage and put yourself as a buyer in a very dangerous place!

Ask our friend, Eric Hsu (M&A Lawyer Exclusively focused on buy side Acquisition). Eric has done over 200 deals and has been in the M&A space for about a decade and a half.

According to Eric-

“Most first-time buyers follow the wrong deal sequence—and it kills their leverage (or wastes $$).

They sign LOIs too early. Spend money too soon. Skip steps that are free.

After advising on~200 deals, here’s the clean, cost-effective 10-step order that gets deals closed:

1.Pre-diligence
2.Seller convo
3.Quick financial review
4.Lending pre-flight
5.LOI
6.Term sheet
7.Financial diligence
8.Legal diligence
9.Draft docs
10.Close

Wrong order = sunk costs, missed red flags, busted deals.
Right order = leverage, clarity, momentum.”

Where have you seen deals stall from bad sequencing?

Remember – Acquisition Pros is here for all your Acquisition needs. You get experts at each step! When you acquire a business, you need to put yourself in the best possible position to succeed. That’s what you get with Acquisition Pros!