The Process
What to Expect
Phase 1: Pre-IOI (Initial Exploration & Qualification)
This is the first step in getting to know each other, often before any formal offer is made.
What happens:
Introductory call to understand your goals and what you've built
High-level review of the business model, revenue, team, and customer base
You share basic financials (3-year P&L, revenue breakdown, etc.) under NDA
I assess strategic fit and alignment with my acquisition criteria
You ask questions about me, my process, and my approach to ownership
Goal: Determine if it makes sense to proceed with deeper discussions. If so, I’ll prepare a non-binding Indication of Interest (IOI).
Phase 2: Pre-LOI (Diligence & Deal Structuring)
This is a mutual discovery process to determine if we want to move forward together.
What happens:
You provide additional materials: customer concentration, employee org chart, service mix, etc.
We hold deeper Q&A calls to explore financial performance, operations, and transition goals
We discuss seller priorities: timeline, involvement post-sale, earn-out/seller note potential
I conduct light diligence (still informal) prior to engaging lenders and professional advisors
I prepare and present an IOI outlining a preliminary valuation range and deal structure
Goal: Agree on an overall valuation, terms, and transition plan. If aligned, I’ll submit a formal Letter of Intent (LOI).
Phase 3: Post-LOI (Exclusive Due Diligence & Close Preparation)
This is where the real work begins, with an exclusive focus on finalizing the deal.
What happens:
You grant exclusivity (usually 60–90 days)
I conduct formal due diligence with legal, financial, and operational advisors
Third-party Quality of Earnings (QoE) report is completed
We finalize the deal structure (e.g., purchase price, earn-out, seller financing, working capital)
Legal teams draft the purchase agreement and closing documents
We build a transition plan: communication, employee retention, client handoff
You continue to run the business while I prepare for ‘day-one’ transfer and operations
Goal: Close the transaction and begin a smooth, respectful transition.
Phase 4: Post-transaction
I step into lead the business and you help to stabilize the transition including mentoring the incoming team.
What Happens
As the seller, you may stay on for 6–24 months in a consulting, transitional leadership, or board advisory role, depending on the agreement.
You’ll help transfer key relationships, stabilize operations, and mentor the incoming team—but you're no longer carrying the full weight of the business.
Expect a shift from day-to-day management to strategic guidance, allowing you to ease into your next chapter.
The goal is to align interests—you benefit from helping the business succeed during the transition
You likely retain a minority ownership stake (usually 10–30%) in the business post-close. You participate in that second exit alongside the new owner/operator.
What Sellers Can Expect from Me
A confidential, respectful process—I know how personal this can be and how important legacy is.
Clear communication at every stage, transparency throughout the process including all terms, responsibilities, and incentives.
A focus on continuity for your team and customers
Flexibility—each business is unique, and I work to structure the right deal for both sides
A partner during all phases including the post transition.
Timeline
The process from initial meeting to business transition typically happens in 4-8 months. Post transaction can be an additional 6-24 months, depending on your goals and how we structure the transaction. A typical timeline would look like:
Introductory Phase: 2-4 Weeks
Informal Diligence and Structuring: 3-5 Weeks
LOI Acceptance, Professional Diligence and Closing: Up to 6 Months
Post close transition: 3-6 months