How to Sign 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.

Play by

Jeremy Segal

Executive Vice President Corporate Development at Progress

About the play

This play is designed to run an accelerated process and sign an M&A deal in 30 days.

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Preparation

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.

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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.

People

Deal Sponsor, Executives

Difficulty

Medium

Materials

Time

30 minutes

Running the Play:

Prepare a comprehensive preliminary due diligence list

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:

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Create a 1-page question list of all the key questions pre-LOI.
Avoid asking questions that can be answered with a simple 'yes’ or ‘no’. Frame the questions in a way that requires the target to explain how they approach it. -
Ensure the questions are aligned with the overall strategy and deal rationale.
Establish your “P1s” or most critical requests and keep the focus on those items. Those requests can provide the insights you need to determine whether you still want to proceed with a deal, whether your strategic rationale is still supported, and whether you can still justify your preliminary view on value.

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Negotiate for exclusivity

During LOI negotiations, request a reasonable period of exclusivity with automatic extensions, provided that both parties continue to negotiate in good faith.

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Accelerate due diligence

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.

Negotiate during due diligence

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.