LOI Timeline Conditions

Heather explains that while buyers feel immense pressure to meet the typical 90 day closing window, the reality is that the seller holds most of the control over the timeline. Unlike a home mortgage where the borrower provides most data, a business acquisition requires roughly 80 percent of the documentation to come from the seller. To protect yourself, Heather recommends flipping the script: when you agree to a seller’s timeline, provide them with a corresponding list of deadlines for their own deliverables. This includes demanding three years of tax returns and year to date financials immediately to secure a term sheet. Heather also highlights a common seasonal hurdle: in the first half of the year, lenders will likely require the most recent year’s filed tax return rather than an extension, which often catches sellers off guard.