9: Conclude Due Diligence

Summary of the Process

A) Sign off on completion of due diligence
B) Open escrow and submit an additional deposit

If you’re satisfied with due diligence and wish to proceed, it’s time to conclude the due diligence phase, which involves signing a document stating that you intend to move forward with the transaction subject to any conditions that must be met prior to closing. Once due diligence is concluded, you may be required to submit an additional deposit, if specified in your LOI, to the escrow company, signaling your commitment to the purchase and securing the deal.

A) Sign Off on Completion of Due Diligence

Sometime during due diligence or upon its expiration, you may decide you’re satisfied with the results of due diligence and are ready to proceed with the transaction. When this happens, you and the seller sign a document memorializing the “conclusion of due diligence,” documenting your intent to move toward a closing. Formally concluding due diligence is helpful for you as it gains the seller’s cooperation.

There are often contingencies that survive due diligence, such as bank financing, franchisor approval, lease assignment, or license transfers. These contingencies are resolved between the conclusion of due diligence and the closing and will be noted in the document concluding due diligence.

B) Open Escrow and Submit an Additional Deposit

Upon signing off on the conclusion of due diligence, we will request that you place an additional deposit with the escrow company if specified in your LOI. All deposits will be applied to the final purchase price.