If the buyer is unable to close the deal in the time the LOI (Letter of Intent) allows, the seller should reach out to their advisers to determine whether the buyer is having any issues that may compromise the deal. If the buyer does not have the necessary funds lined up to complete the deal, he might stall for more time that was not agreed upon in the LOI.
Exclusivity and Pressure
Regardless of the reason, if you and your M&A intermediary believe the buyer is not able to close the deal within the time allotted by the LOI, you may be better off refusing to continue granting exclusivity. Informing the buyer that you’ll begin talking with other interested parties is often a good technique to get the buyer to wrap up the deal and close. Sometimes, it is necessary to put some pressure on the other side of the deal in order to close it.
Wrapping Up the Deal
Informing the buyer that you’ll begin talking with other interested parties is often a good technique to get the buyer to wrap up the deal and close. Sometimes, it is necessary to put some pressure on the other side of the deal in order to close it.
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