The Final Days – Overview of the Closing Process

The buyer has done their due diligence, and you’ve done yours. The terms of the transaction have been broadly agreed to – including the price. 

Next up: The closing. You’ve gotten this far – what could go wrong? 

Hold my beer… 

There’s no such thing as a perfect closing. But we can come close. Here is a recap of the process from signing the letter of intent (LOI) to the closing:

1. Letter of Intent: The buyer and seller sign the offer or LOI. 
2. Due Diligence: Due diligence begins when the offer or LOI is accepted. Due diligence typically lasts 30 to 60 days. 
3. Purchase Agreement: The parties’ attorneys draft the purchase agreement. Negotiating the terms of the purchase agreement often takes several weeks or longer. 
4. Conclude Due Diligence: Once the buyer is satisfied, they sign off on the completion of due diligence. Additional contingencies remain prior to the closing.
5. Closing: The closing is conducted via a roundtable or virtually. The purchase agreement is either signed before or at the closing.

The closing. You’ve gotten this far – what could go wrong? Hold my beer… There’s no such thing as a perfect closing. But we can come close.